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Last week our mortgage lender quoted us this lock in fee in order to lock in our rate for 120 days. We don't have a choice as to when to close as we are building new construction in Cary and it won't be ready till July 10th. We feel as though this is unfair as we don't have a choice in the matter, but by our contract have to secure our loan early. Does anyone know if these fees are negotiable or where we can go so we don't have to pay these fees?
I'm not sure I understand.....are you contractually obligated to use the lender you refer to? If yes, I would ask them to explain why it is necessary to lock at 120 days out. It should be your choice to float or lock.
Russ
Last week our mortgage lender quoted us this lock in fee in order to lock in our rate for 120 days. We don't have a choice as to when to close as we are building new construction in Cary and it won't be ready till July 10th. We feel as though this is unfair as we don't have a choice in the matter, but by our contract have to secure our loan early. Does anyone know if these fees are negotiable or where we can go so we don't have to pay these fees?
Not sure if this is the case but I know in most cases when you lock should the lender be able to get a lower rate for you at the time of closing they will do so, but if you lock in now as long as you close in the next 120 days you can not get hit with a higher % rate. I wish I could have locked 120 days out just for the peace at mind aspect of it. We lucked out and got ourselves a great rate but I know I was looking to lock as soon as I started to build but couldn't lock until 60 days out. Also keep in mind that in most cases the monies you put out to lock go toward the principle of the loan.
from what i know the lock in fee is credited back to you a closing , as part of closing cost
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