lock in interest rate

Guest 0.10 Dollars($)

When I signed Equity line of credit , I was told by bank that I can lock interest rate @ any time for period of 5 years, but wen I went to bank to do that (base on wery low prime rate) bank was told me that I can lock in with 8% interest rate, that is much hire rate than I have at this point. Does Bank have right to do this? I want to lock in my interest rate.
Thank you Bobby

smckaybiz · Posted: Sat Jun 07, 2008 2:33 pm Post subject:

That definately doesn't sound right to me. Can they do it? Yes they can because the Fixed rates they offer can change whenever they choose to. I would say shop around! There are definately better interest rates available thats for sure. The bank I work for right now allows you to lock in at any time for either 5, 10, 15, 20 years or you can even lock your rate in to a 7yr interest only payment although I would never suggest the 7yr int. only unless if your just flipping properties or something of the sort. I believe our 5yr fixed rate right now is around 6%, depending on your credit score and your loan to value ratio.

I hope with the situation you're in you are able to refi you current HELOC because it sounds like your current bank is taking you for a ride!

Best of luck

adonis · Posted: Sun Jun 08, 2008 9:33 pm Post subject:

Hi Bobby,

Don't go with this bank. It's not the fair service they are providing. Shop around and try to find out much better offer.

securityonefinancial · Joined: 19 Jun 2008 Posts: 5 10.83 Dollars($)

Interest rates have been on the RISE!!!! DEFINEATELY LOCK IN RATES!!! I'm the mortgage consultant of Security One Financial.

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brian1 · Posted: Fri Jun 20, 2008 8:41 pm Post subject:

Security why would you suggest locking the rate? Sounds like the OP has an equity line that probably has a good rate. I would stay with the rate you have an dpay extra if you lock that extra will go towards interest.

They can set their locked rates at a point aboove their HELOC rates and this sounds a bit high but it is a second lien?

Brian

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