fee for rate lock in

Guest 0.10 Dollars($)

I am a first time home buyer. May be this question has been asked before but I could not trace that out. Will there be any fee charged to lock in my interest rate?

blue · Posted: Wed Jul 05, 2006 3:47 pm Post subject:

Hi,

There is no fee charged to lock in a range of rates for 60- 90 days. For longer period of time there may a cost involved.

Blue

Samantha · Posted: Wed Jul 05, 2006 4:01 pm Post subject:

Hi,

You need not hesitate to ask anything related to mortgage and real estate here. Smile

Even if it has been asked before, we will try to attend you. At least you can take our help to trace out the earlier post.

Now regarding lock in fee, the lenders will not charge any fee for a traditional 30 - 90 day rate lock but they may charge for a period beyond 90 days. Some lenders will allow you to float down the rate once during the mortgage process.

Typically the lender requires a lock fee to ensure that the transaction will in fact close and so you may need to bring 0.5% - 1% of the mortgage amount. This amount is refunded or credited at the time of closing.

While you apply for a loan it is always important to know what the lender is promising. You must ask among other things whether the lender charges any fee to lock in your interest rate, will the fee increase for longer lock in periods and if it increases then by how much will it increase.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

thanks for th info.

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