Residential Finance Network Mortgage Rate Lock-In Policy
Mortgage rate lock-ins are needed for two reasons. First, interest rates change constantly. Second, there is usually a 15 to 60 day period between the time a borrower submits an application to the time that his or her mortgage loan is closed. Locking a mortgage rate protects borrowers against interest rate changes from the date of the rate lock-in until the date of the closing.
Residential Finance Network makes every effort to execute mortgage rate lock-in requests as soon as received, but no rate lock-in request is valid until a written confirmation is issued.
Definition of a Mortgage Rate Lock-In
A mortgage rate lock-in is an agreement between a lender and a borrower that specifies a mortgage loan program, an interest rate, total points due and an expiration date of the agreement. The lender guarantees that regardless of market conditions the borrower will receive a loan with terms according to the rate lock-in agreement.
Are There Any Fees To Lock A Rate?
Residential Finance Network does not charge any fees to lock the rate on a mortgage loan. Once a borrower is informed that they can lock in their interest rate, Residential Finance Network will execute a lock request without requiring any fee.
When Can A Rate Be Locked?
Residential Finance Network requires that a completed application be received before a rate lock can be requested. An application is complete when a borrower has submitted the application with all requested supporting documentation. Borrowers are notified as soon as their rate can be locked.
Mortgage rates for all programs can be locked between 11am and 3:30pm Eastern Time Monday through Friday. Some programs can be locked any time 9am to 5pm Monday through Friday. All requests made outside of those hours will be processed during the next rate lock time window, but rates may be different. Every effort will be made to execute rate lock requests at the rate and point option requested. In the near future, we expect to be able to offer lock-ins 24 hours per day/7 days per week.
Refinance loans can be locked upon receipt of a completed application. Purchase loans should not be locked until a specific closing date is established between the buyer and the seller.
How Long is A Rate Locked In For?
All mortgage rate quotes under "Today's Rates" are for 45 or 60 day rate locks. Refinances can usually be closed within 30 or 45 days. Purchase loans depend on the closing date specified in the sales contract between buyer and seller, so borrowers should make sure that their rate lock request extends at least until their closing date.
Confirmations of Mortgage Rate Lock-Ins
No mortgage rate is locked until Residential Finance Network provides a written confirmation directly from the lending institution that will fund the loan. Written confirmations are provided within two days of the request date.
What Happens If Rates Decrease After A Rate Is Locked?
If rates decrease by more than 3/8% or more between the time a borrower locks their rate and the time of their closing, borrowers will be offered an option to renegotiate their existing rate lock. Please note that renegotiation might cause the scheduled closing date to be delayed.
