Home Mortgage Refinance Loan

If you are shopping for a new mortgage loan you’ll need a particular interest rate lock to guarantee your mortgage rate. Rate quotes including loan terms are meaningless until you obtain them on paper. Here are several tips regarding rate locks to help you avoid common mistakes at the time mortgage refinancing.

When comparison shopping for a new mortgage loan, once you find the rate you want, you must physically lock in that rate by telling your loan representative, “Please Lock That Rate.” Mortgage companies including brokers do not automatically lock mortgage rates. There are several ways to lock in your interest rate as each mortgage company including broker has their own procedures. Mortgage lenders do not have a standard for guaranteeing a particular interest rate so it is your responsibility to ensure the rate lock happens.

Once you’ve notified your loan representative that you need to lock for specific duration of time, say 30 days, that representative should provide you written confirmation of your lock. Never settle for a verbal guarantee of your mortgage interest rate or terms. Also, if you’ve agreed to pay points in exchange for a lower mortgage rate, the points including what you’re receiving for paying them should be included in the written guarantee.

It is important to realize the interest rate lock you receive from your mortgage company or broker is rarely the interest rate you qualified for from the wholesale lender. Mortgage companies including brokers routinely mark up wholesale mortgage rates to boost their profits. the markup of your mortgage interest rate is called Yield Spread Premium including agreeing to pay the markup could cost you thousands of dollars in unnecessary mortgage interest. Ask your loan representative to see the mortgage lock from the wholesale lender including compare the to your mortgage rate including you’ll see any markup added by your Mortgage Company or broker.

You might learn more regarding your mortgage refinancing options, including costly mistakes to avoid with a free mortgage tutorial.

For more information on Mortgage Refinancing - Interest Rate Quotes Are Worthless Until You Lock in Your Mortgage Rate:

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Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes including predatory lenders. To obtain your hands on the free video tutorial: Mortgage Refinancing - What You Need to Know, which teaches strategies for finding the best mortgage including saving thousands of dollars in the process, visit Refiadvisor.com.

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Mortgage Rate Lock

Written By: Louie_Latour