Our Rate Lock Policy
It's easy to lock your rate with CenturyPoint Mortgage
When you find a great mortgage rate, you want to lock it in as soon as possible. Locking your rate ensures that the rate you were quoted will be the rate you pay at closing. We Guarantee It!
Unlike many other lenders, there is no fee to lock in your rate. We do require that you have a property selected if you are buying a home. We also ask that you provide a deposit of $495.00 at the time you lock your rate. The deposit, which is credited 100% towards your closing costs, not only indicates that you are serious about moving forward with your mortgage application. It also allows us to begin processing your loan, covering the costs associated with items like underwriting, ordering an appraisal of the property and pulling your credit report.
When to Lock
It is recommended that you lock your rate when you apply for your loan, however it is not required. If you believe that rates are going to come down in a few days, you are welcome to "Float" your rate and lock in later. However, rates that go down also go up, so we always recommend that when you find a mortgage rate you like, you should lock it right away.
Rate Lock Period
A standard rate lock period is 30 days from the time of application (which is when most borrowers lock their rate). CenturyPoint Mortgage offers longer - or shorter - rate lock periods if required. If you need an extended lock period, such as 45 or 60 days, speak with your Mortgage Specialist for details. Note that there may be a fee for a longer lock period, or for extending an existing rate lock.
Re-Locking when Rates Drop
It can be tempting to try to time the market and change a rate lock if rates drop significantly, but there are costs involved. It's best to lock a rate you are comfortable with and avoid making changes once the lock is in place.
Keep in mind that when you lock your rate, both you and CenturyPoint Mortgage are committing to close your loan at a specific rate, within a certain period of time. A rate lock is a two-way street. It protects you if interest rates rise, and it protects us if interest rates fall. We only allow one lock per borrower per property address, so the rates and fees quoted on our website are for new customer transactions only. There is no option to "float down" to current market pricing once you have locked in. Other places may claim to have a free float down option, but the cost of this float down will be built into your initial fees. We provide a detailed Lock-In Disclosure and Agreement usually within 24 hours of locking to disclose all of our lock terms up front so there are no surprises down the road. When we are able to verify all the information on your application to be accurate on time, we believe in keeping the rate and lender fees exactly where we both agreed upon.
Rate Lock Refunds
If you decide to cancel or withdraw your application within 5 business days of application, you may request a partial refund of your deposit by contacting your Mortgage Specialist. The actual amount of your refund will depend on the costs incurred by CenturyPoint Mortgage at the time of your cancellation, such as pulling credit, creating your loan files and starting the underwriting process. For example, if we have secured an appraisal for your property, your refund will be reduced by the cost of the appraisal. Of course, we will also provide you with a copy of the appraisal for your records. Your Mortgage Specialist can provide you with details on the amount of refund you may receive.
