If I lock-in mortgage rates for my first time home purchase financing, can the locked-in rate be

Asked by Manfredo, Herndon, VA Sat Aug 15, 2009

revised/adjusted before closing out/settlement day if the rates fall around that time frame..? Any regulation(s)/policy(ies) someone can point out or direct me to look at..?
Thank you so much.

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Mary Margaret…, , Fairfax County, VA
Mon Aug 17, 2009
Sorry, I misread the effective date for the Housing & Economic Recovery Act- HERA. The effective date was July 30th, 2009. Thanks, Shawn, for the correction.

Mary Margaret
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, ,
Sat Aug 15, 2009
Actually, the Housing & Economic Recovery Act took place on July 30, 2009. For example once a mortgage broker submitted a loan file then the lender send outs their Truth In Lending disclosures directly to the borrower. If the terms of the loan change before the day of closing you will then need to account for added days since the lender will need to issue out new Truth in Lending disclosures.
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Sonal Goda, Agent, Chantilly, VA
Sat Aug 15, 2009
Hi Manfredo - some lenders do this and some do not - it's call a float-down option. Some lenders charge for this and some do it for free.

I would recommend that you speak with Mayur Shah of Chevy Chase Bank. I believe they do the float-down option for no charge. His office number is 703-787-3735.
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Mary Margaret…, , Fairfax County, VA
Sat Aug 15, 2009
The best advice I will offer is to check with your lender. You want to ask about locking-in the rate and timing for settlement.

As of June 30th, there are some brand new government regulations for the mortgage industry about information to the consumer. Called the Housing & Economic Recovery Act (HERA), it changes the timing in sending Truth- in- Lending disclosures to homebuyers and addresses the timing of when fees can be charged. You should be sure to get clear explanations of all rate and timing factors from your lender.

Best wishes.

Mary Margaret
Web Reference:  http://www.mmgates.com
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