Arizona Mortgage Team

Arizona Mortgage Rates. Refinance FHA, VA and Jumbo Mortgage Loans.

  • Loan Programs
    • FHA Loans
      • FHA 203k Loan
      • FHA Streamline Refinance
      • FHA Kiddie Condo Loan
    • VA Loans
    • USDA Loans
    • HomePath Loans
    • Interest Only Mortgage Loans
    • Refinancing
    • Reverse Mortgages
      • Reverse Mortgage Quote
  • Insurance
    • Arizona Car Insurance
    • Arizona Homeowner Insurance
    • Arizona Life Insurance
    • Arizona Renters Insurance
  • Press
  • Blog

Does It Cost Money To Lock A Rate?

June 15, 2009

Sometimes I can’t remember what I have and haven’t talked about before, but I thought since I have been asked the following question so many times in the last week, I would at least write a little blurb about it.

Does it cost money to lock a rate?

While I am not exactly sure why this has been such a popular question lately, here goes my best answer…

It depends.

The Initial Rate Lock

When you are working with your loan officer to get your initial paperwork submitted to the lender, at some point in the process, your loan officer will lock your loan with the investor that your loan will end up being purchased by.

The lock process itself is easy for him to do and usually takes only a couple of minutes.

When the rate is officially locked with the investor, the investor issues something called a “lock confirmation” to the loan officer – so the loan officer knows for a fact that your loan has been locked or not.

It is really simple – if he hasn’t gotten a lock confirmation, he knows that the rate isn’t locked!

Common Rate Lock Periods

When your loan officer has locked your loan, he will lock it for a period of time. Common periods of time given by investors include: 10, 15, 25, 30, 45 or 60 day locks. Typically, an investor will pick any 3 of the above periods and if the loan officer wants to lock for a period different than those listed, he can contact the investor directly.

Rate Lock Extensions

If for some reason, your loan is taking longer than the loan officer expected it to when he originally locked it – he will need to file for a rate lock extension. Typically, this is where the loan officer will bring up to the borrower that a rate lock costs money.

Because it really does cost money to “extend” a lock – it is all just a matter of who is paying – you or the loan officer.

The easiest way to figure out who pays in my opinion?

Find out why you need to extend the lock. If it is because you as the borrower didn’t get paperwork back in a timely manner, it might be your fault – so you should be willing to pay. If on the other hand, the loan officer just mis-judged the amount of time it would take to get your loan done, it might be the “right” thing if the loan officer pays.

Does a rate lock cost money?

The short answer is – generally the first time, no. Or, at least — it shouldn’t.

But if you need a lock extension or have to re-lock a loan because it was locked incorrectly, then yes.

Filed Under: Interest Rates Tagged With: Mortgage Rate Lock, Rate Locks

Recent Items

  • How Does a VA Streamline Work?
  • Can you Use a Mortgage Assumption after a Divorce?
  • What are the Major USDA Streamline Guidelines?
  • How is the USDA Monthly Guarantee Fee Calculated?
  • How to Purchase USDA Foreclosed Homes?

Latest News

  • How Does a VA Streamline Work?
  • Can you Use a Mortgage Assumption after a Divorce?
  • What are the Major USDA Streamline Guidelines?
  • How is the USDA Monthly Guarantee Fee Calculated?
  • How to Purchase USDA Foreclosed Homes?

Search

IMPORTANT MORTGAGE DISCLOSURES:

When inquiring about a mortgage on this site, this is not a mortgage application. Upon the completion of your inquiry, we will work hard to match you with a lender who may assist you with a mortgage application and provide mortgage product eligibility requirements for your individual situation.

Any mortgage product that a lender may offer you will carry fees or costs including closing costs, origination points, and/or refinancing fees. In many instances, fees or costs can amount to several thousand dollars and can be due upon the origination of the mortgage credit product.

When applying for a mortgage credit product, lenders will commonly require you to provide a valid social security number and submit to a credit check . Consumers who do not have the minimum acceptable credit required by the lender are unlikely to be approved for mortgage refinancing.

Minimum credit ratings may vary according to lender and mortgage product. In the event that you do not qualify for a credit rating based on the required minimum credit rating, a lender may or may not introduce you to a credit counseling service or credit improvement company who may or may not be able to assist you with improving your credit for a fee.

Copyright © Mortgage.info is not a government agency or a lender. Not affiliated with HUD, FHA, VA, FNMA or GNMA. We work hard to match you with local lenders for the mortgage you inquire about. This is not an offer to lend and we are not affiliated with your current mortgage servicer.

Contact Us | Terms of Use | Privacy Policy

Buy Mortgage Leads

Mortgage.info

NMLS ID #1237615 | AZMB #0928735

8123 South Interport Blvd. Suite A, Englewood, CO 80112

CLICK TO SEE TODAY'S RATES

Contact Us