Rate lock in

Can someone explain what is meant by Rate lock in?

My credit union had this on their website... I am trying to understand it..

Rate Lock-Ins :
Closing rate is set 48 hours prior to closing
if a lock-in has not been selected
30 day rate lock: ½ point, non refundable fee
60 day rate lock: 1 point, non-refundable fee
90 day rate lock: 1 ½ points, non-refundable fee

i believe if you close within that date range after submitting an application, you will get that rate....

when you buy a point or 1/2 a point, you are paying them a percent of the final loan amount but inturn, you get that lower rate.

1 point can be considered avg when buying property...

Yep, that's right. You are given the option to lock in a rate for 30, 60 or 90 days with the corresponding interest rate. They are advertising the rate with points which means you pay a % of the total price of the mortgage. 1%, 1.5% at closing or included in yoru closing costs.

The lower the rate or course, the better, but you have to see if paying the points puts you ahead or not. I've never paid points because the difference in the rate didn't make financial sense for me.

I would shop around because those fees to lock your rate in are not great at all.


1/2 point to lock in your rate for just 30 days? Hell Chase gave me a free 90 day rate lock 0 points.

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Posted by DjPiLL

I would shop around because those fees to lock your rate in are not great at all.


1/2 point to lock in your rate for just 30 days? Hell Chase gave me a free 90 day rate lock 0 points.

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not to bash my employer but they are very pickey in respect to credit worthiness...

I really depends on how good the rate is and how long you plan on carrying the mortgage. I also refinanced with Chase and locked for 60 days with no points and no origination..

I must have said no to some other fees I'm sure, but we close Tuesday.

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Posted by MCDO15

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Posted by DjPiLL

I would shop around because those fees to lock your rate in are not great at all.


1/2 point to lock in your rate for just 30 days? Hell Chase gave me a free 90 day rate lock 0 points.

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not to bash my employer but they are very pickey in respect to credit worthiness...

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What does this mean about being picky?

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Posted by DjPiLL

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Posted by MCDO15

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Posted by DjPiLL

I would shop around because those fees to lock your rate in are not great at all.


1/2 point to lock in your rate for just 30 days? Hell Chase gave me a free 90 day rate lock 0 points.

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not to bash my employer but they are very pickey in respect to credit worthiness...

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What does this mean about being picky?

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saying for the other posters that upper level credit people tend to get chase deals that you acutally see advertise. avg customers say me who even is an employee (for many years now) with them, don't get good deals. sad but true and chase has every right to do that...after all, it is there money

its no disrepect to any one member in the liw community if thats what you are saying

Anyone with decent credit can get better rate lock deals than the ones posted in the original post.

1/2 a point to lock in for just 30 days? Thats INSANE!

Thats an extra 2k on your closing costs for a 400k house for something that many other banks will give you for nothing.

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Posted by violet

I don't understand the point of locking in a rate. Wouldn't it be more of an advantage to pay that 1 point to get a lower rate?

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You shouldn't be paying points period.... for any reason IMO.

Paying points to lower a rate is usually only good if you plan on staying in a house for crazy long and will NEVER refinance (to either cash out equity or get a better rate).

Lets say you pay points to drop a mortgage down to 5.75%. Then lets say in a year from now the rates dip below 5% and you want to re-fi.... the money you just laid out for points goes out the window.