Financing in Lees Summit>Question Details

Linz_s02, Home Buyer in Lees Summit, MO

does it cost anything to lock in an interest rate on a house?

Asked by Linz_s02, Lees Summit, MO Fri Aug 14, 2009

I keep hearing people say that the longer I wait to lockin an interest rate, the less $$ I will have to pay. I'm getting a FHA loan. what does everyone mean when they say this? does it really cost money to lock in a rate and if so how much? is there any way you can get out of paying to lock in a rate? thanks

Help the community by answering this question:


Yes, you don't have to pay anything to lock in a rate - if you would like, I can refer you to a couple of mortgage lenders who I work with on a regular basis (and, no, I do not get any kick backs or referral fees from them for referring people to them). . .I just know that my customer service skills are superior and I only work and refer potential clients to others who I believe have the same customer service skills as I do. Let me know if you would like the numbers to some top notch mortgage lenders. . .and, if you don't already have a Realtor to assist you in your home purchase - I would love the opportunity to be of assistance to you. My cell is: 816-210-4212. My website is: Remember: if you want to qualify for the 1st time home buyers $8,000 credit, you need to move into your new home by November 1st, 2009! Time is runninng out! Make sure whatever Realtor you go with understands this tax credit completely!
0 votes Thank Flag Link Sat Aug 22, 2009
Like David explained, each lender is different, but most don't require that you pay to lock in your rate. My guess is if you pay to lock in, you will not be able to back out. It might make sense to contact a few other lenders to see what their "locking" requirements are. There is never any harm in shopping around and looking our for your best interest. Good luck.
0 votes Thank Flag Link Fri Aug 14, 2009
Some banks and lenders absorb a commitment fee for consumers that lock rates with them - but that would be about the only thing that I can think of. Most banks and lenders do not charge rate lock fees or commitment fees - but it does happen. I don't know who you are speaking with, but they may be referring to obtaining a particular rate for a certain price? If this is the case, they are referring to a rate lock period. A standard rate lock is 30 days. Some lenders may offer a better rate on a shorter lock period, such as 15 days.
0 votes Thank Flag Link Fri Aug 14, 2009
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