Financing in 07090>Question Details

Gp, Other/Just Looking in 07090

Rate Lock

Asked by Gp, 07090 Thu Jul 29, 2010

My rate lock of 3.99% recently expried due to the bank (TD Bank) not being able to move quick enough to close. The rate a a bit lower now (3.85%), however the bank told me they are extending my rate lock. They told me that they recieved approval to extend the lock. Obviously if the rate were higher, then this would work in my favor. However TD seems to position it as though they are doing me a favor. When I questioned them on this, they explained that this was policy. If my rate lock expries before close, and I don't make the request to have the lock extended, shouldn't I be entitled to the new rate? They told me that if I didn't move forward with the rate I would be subject to a termination fee .

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No, most lenders extend locks on a "worst case" scenario, meaning you get the worse of the market or previous rate, plus an extension fee. I wouldn't complain about a rate of 3.99% in the grand scheme of things.
0 votes Thank Flag Link Thu Jul 29, 2010
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