|
04-18-2007, 11:07 AM
|
|
Member
|
|
Join Date: Apr 2007
17 posts, read 18,793 times
Reputation: 11
|
|
Lock in Fee + 1.3% of Mortgage??????
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?
|
|
04-18-2007, 01:13 PM
|
|
Senior Member
|
|
Join Date: Mar 2007
179 posts, read 282,643 times
Reputation: 78
|
|
|
Rock -
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
|
|
04-18-2007, 01:14 PM
|
|
Senior Member
|
|
Join Date: Jan 2007
Location: Charlotte, NC
2,119 posts, read 1,776,792 times
Reputation: 515
|
|
|
You have to secure the loan yes, but securing the loan does not mean you have to lock in the rate.
Thats my reading off it anyway.
|
|
04-18-2007, 02:00 PM
|
|
Senior Member
|
|
Join Date: Jan 2006
5,318 posts, read 6,636,655 times
Reputation: 2476
|
|
Quote:
Originally Posted by rock23
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?
|
You might want to try these other two forums:
Realty - http://www.city-data.com/forum/real-estate-brokers/
Raleigh Metro Area Form - http://www.city-data.com/forum/ralei...pel-hill-cary/ |
|
04-18-2007, 03:24 PM
|
|
Senior Member
|
|
Join Date: Jan 2007
449 posts, read 484,039 times
Reputation: 137
|
|
|
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.
|
|
04-28-2007, 06:12 AM
|
|
Member
|
|
Join Date: Nov 2006
62 posts, read 104,558 times
Reputation: 35
|
|
|
from what i know the lock in fee is credited back to you a closing , as part of closing cost
|
Please register to post and access all features of our very popular forum. It is free and quick.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
|
|
Welcome to City-Data.com forum! Make sure to register - it's free and very quick! You have to register before you can post and participate in our discussions with 700,000 other registered members. User profiles and some forums can only be seen by registered members. After you create your free account you will be able to customize many options, you will have the full access to over 15,000 posts/day about local topics and you will see fewer ads. 
Linear Mode
