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Contact Information |
Looey Tremblay RE/MAX Property Center 30 Burns Ave San Ignacio, Belize, Central America Skype : LooeyT, MSN : looeyt@hotmail.com
Office: 501-824-0550, (From North America, dial 011-501-824-0550), (Toll-free North America 1-877-836-2756) Cell: 519-241-1230 (Canadian Cell Phone) Fax: 501-824-0447, (From North America, dial 011-501-824-0447)
Lic. #: KW6821
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locking an interest rate |
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How do you lock in an interest rate?
Locking in a mortgage rate with a lender is one way to ensure that same rate still will be available when you need it.
Lock-ins make sense when borrowers expect rates to rise during the next 30 to 60 days, which is the usual length of time lock-ins are available.
A lock-in given at the time of application is useful because it may take the lender several weeks or longer to prepare a loan application (though automated loan practices are cutting this time dramatically).
However, some lenders require borrowers to pay lock-in fees to assure particular rates and terms. Be sure to check that the rates and points are guaranteed and that your lock-in period is long enough. If your lock-in expires, most lenders will offer the loan based on the prevailing interest rate and points.
Lenders may have preprinted forms that set out the exact terms of the lock-in agreement. Others may only make an oral lock-in promise on the telephone or at the time of application.
Resources:
* "A Consumer's Guide to Mortgage Lock-Ins," published by the Federal Reserve Board and Office of Thrift Supervision, Washington, D.C.
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