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Cost to lock rate

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Cost to lock rate

I started the paperwork today for my loan and the originator is asking for 1% of the loan amount upfront inorder to lock the rate. It states this is non-refundable.. I am a little concerned because that is a significant amount of money and I worry the seller might back out if the apprasial doesn't come through OK.

 

Is this normal? Should I go with it or just float and hope the rates dont rise before 6/1?

 

thanks in advance

Message 1 of 6
5 REPLIES 5
Established Contributor

Re: Cost to lock rate

Ugh. I don't think I woulkd pay that upfront, non-refundable. Seems scammy.

Message 2 of 6
Established Contributor

Re: Cost to lock rate

...latest market bet is that rates are not going up in June, maybe not even in Sep ...hth


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Message 3 of 6
Super Contributor

Re: Cost to lock rate


@stressednj wrote:

I started the paperwork today for my loan and the originator is asking for 1% of the loan amount upfront inorder to lock the rate. It states this is non-refundable.. I am a little concerned because that is a significant amount of money and I worry the seller might back out if the apprasial doesn't come through OK.

 

Is this normal? Should I go with it or just float and hope the rates dont rise before 6/1?

 

thanks in advance


Since it is non-refundable, I wouldn't pay it and take my chances if I were in your shoes..

Message 4 of 6
Super Contributor

Re: Cost to lock rate

The only time I ask for a rate lock fee is on extended locks. Like 90 days on new construction.....

 

If this is a regular rate lock, then this is just a scummy sales tactic to make you feel locked in with this lender. 

 

 

Retired Lender
Message 5 of 6
Frequent Contributor

Re: Cost to lock rate

Find another lender!

Cap One Venture-$13k I Chase Freedom-$3k I BoA-$2k, VS-$1k, Cap One QS1-$3,300 I FICO mortgage middle score 700. Last app: mortgage
Message 6 of 6
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