What is Locking-In?
When the rate of interest on a mortgage loan is “Locked- In”, that loan rate is guaranteed at settlement. There is a deposit associated with Locking. Please refer to our Rate Lock Policy for additional information. ^top^ Closing What is closing? Closing is the day when the sale or purchase of a home is complete, or when you receive the proceeds of your refinance loan. This is also known as settlement day. ^top^ What are closing costs? Closing costs are expenses that are paid during closing or settlement that are in addition to your down payment, pre-paid property tax and homeowner’s insurance. Closing costs vary, please contact a Mortgage Advisor for more details. The borrower usually pays closing costs associated with a Mortgage. Some purchase mortgages allow for the seller to pay some portion of the closing costs. There are closing costs associated with both purchase and refinance mortgages. ^top^ What is the Good Faith Estimate?
“Locking-in” means that the lender will guarantee the interest rate on your mortgage for a limited period, regardless of fluctuations in market rates during the loan processing period. If you are concerned that rates will go up between the time you apply and the time the loan closes, you should lock-in. Some banks offers a lock-in with an option to “float down” if the rates are lower at closing. There is usually a cost either at the beginning or end for this option.
