Countersignature Interest Rate Lock Agreement For Free

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Executed and enforceable legal documents typically must be in writing. Secondary market investors require written rate lock agreements. Since the legs stop short of specifying a written agreement, many have contacted the CFPB directly.
A mortgage rate lock is an agreement between a borrower and a lender that allows the borrower to lock in the interest rate on a mortgage for a specified time period at the prevailing market interest rate. The lender may charge a lock fee, which the borrower must pay if he or she does not lock the interest rate.
We DO allow you to lock a rate before you're in contract, but there are some important caveats that you should know as a consumer: Even where you can lock and shop you don't have unlimited time to go into contract, so check with your lender if you choose to lock in advance.
Lenders have no obligation to lower your rate if interest rates fall further after you lock in. Sometimes, however, they'll be willing to work with you.
While most mortgage brokers will tell you that a rate lock is an agreement between you and the lender that you cannot walk away from, the truth is that you can and the pressure you mortgage broker is applying is a load of crap. Even After You've Signed The Contract.
Lock-ins are a big reason that borrowers choose to switch lenders. Imagine that you lock in a 30-year mortgage at a 4.5 percent rate for 30 days. Even if you let your lock expire, and don't close within 30 days, most lenders won't give you the lower rate at closing.
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