Harp Financial Mortgage Company

 

 

 

Understanding Rate Lock Options

Home Home Mortgage Research > Harp Financial Information: Rate Locks Page 1

 

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How to read the rates displayed on this site. 

California home loans only.

 

The different columns show numbers that represent the points charged to guarantee the interest rate at the left of each rate sheet.  In order to lock in to a certain rate the mortgage file must have "e-approval" first.  That means that enough information must be provided to Harp Financial Mortgage Company upfront to run an electronic approval.  If the rates drop after you are locked in by more than half a point in fees we can negotiate a new lower rate.  If you cannot close within the lock-in period, it will cost you one eighth of a point per week to extend the lock-in beyond original time frame.  The rates on most pages are updated daily.

 

Points are charged based on a given amount of time to

guarantee an interest rate.

Sample Rate Sheet with lock in periods explained
Rate 21 Day 30 Day 45 Day 60 Day

 

4.250

Lock after file submitted to underwriting or anytime after approval.

Lock prior to submitting the file to underwriting.  Must close within 30 days.

Lock prior to submitting the file to underwriting.  Must close within 45 days.

Lock prior to submitting the file to underwriting.  Must close within 60 days. 

The first vertical column named "Rate" shows most of the current rates available. 

 

The columns to the right named "12 Day", "21 Day", "30 Day", "45 Day" and "60 Day", is the time the the interest rate would be locked in and guaranteed.  The number represents the "Points" that each particular interest rate would cost.  Points means percent of loan amount as a fee.  One point equals one percent.  One and a quarter points equals one and a quarter percent of the loan amount.  etc...

 

Each column shows the points that are charged for a given amount of time to guarantee the interest rate at the left.


7 Day not currently available due to volume.


12 or  15 Day lock-in is available after your loan is approved and you are basically ready to close. This is a good choice. It is our most popular lock-in choice, because it offers the lowest fees.


21 Day lock-in is available when file is submitted to underwriting but is not yet approved or you want to lock in a good rate and transaction will close within 21 days. This is our second most popular lock-in period.


30, 45 and 60 days would be useful in volatile markets or if you feel like locking in current program. Note once you lock-in, you are committed to the rate sheet as of the day that you lock in. You can take a higher or lower interest rate, but only pick from the rate sheet on the day that you locked in.

 

We have rate locks not shown including: 90 Days, 120 Days, 180 Days.  The longer term lock-ins usually require a non refundable fee paid upfront to the lender.  If for any reason your escrow does not close on time, you forfeit the upfront deposit.

 
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