Get Mortgage Rate Lock In Writing

by Tim from Crossvile, TN

Ask Kate why getting a mortgage rate lock in writing is not optional: Kate, I applied for a mortgage refi on April 3rd. On April 11th, I was ok'd and given a rate of 4.5 percent. On April 16th, I received an email from the broker stating that his office had moved and he was going on vacation for a week. On May 1st, I received an email stating my appraisal was sufficient for the loan amount.



When I heard nothing on May 18th, I sent an email to the broker for a status since he had previously stated we would close in late May. He responded that his office was swamped and that they had not even begun working on my loan. He instructed me to make my June payment and settlement would occur in June.

He wrote, Don’t worry your loan and lock are good.

Then on June 8th, he sends an email to apparently all his clients stating rates had gone haywire and he is putting all loans on hold to await lower rates. I emailed him that I was locked and he replied that he did not lock my loan because he felt confident rates would not change. Now he is refusing to honor the locked rate.

Who do I need to contact to get him to honor the rate? He is a broker with a national bank. Any helpful suggestions would be appreciated.

Tim asks Kate: Get Your Mortgage Rate Lock In Writing

Ask Kate at Get-Your-Best-Mortgage-Rate.com
Dear Tim, Your mortgage rate was never locked. That is the shocking truth.

Everyone should listen. Tell your friends. If you do not get your mortgage rate lock in writing, you do not have a mortgage rate lock agreement. In other words, your interest rate is not locked.

Tim, I am going to repeat this. If a mortgage rate lock is not in writing, you have no way to prove a lock agreement.

Mortgage lending is in a sad state of affairs. Just like you, many mortgage applicants get verbal confirmation of mortgage rate lock but never receive it in writing. And this is how a mortgage rate of a lifetime slips through a borrower's fingers.

I'm tired of seeing homeowners cheated out of the best mortgage rate, the rate they thought they locked. So, I have written two articles today to help you and other homeowners take control of locking mortgage rates:

Mortgage Broker Fees - Get 'Em In Writing, Writing, Writing

Yield Spread Premium - Say What?

Don't miss the links at the bottom of the page for more help with mortgage rate locks.

Ask Kate about Your Mortgage

Anyone can ask Kate a question or add a comment. (To comment, look for the link at the bottom of this page.)

Best Wishes,

Ask Kate

Finding Help for Locking Rates

My Interest Rate Lock Guarantee - Help for timing your rate lock.

The best solution to avoiding hidden fees is to ask the right questions before you lock mortgage rates.

Get mortgage broker fees in writing or your rate lock is meaningless!

How good is a mortgage interest rate lock guarantee?

Yield Spread Premium is a common reason for losing your rate lock.

Questions to ask before you lock.

Search questions and answers at Ask Kate Mortgage Rate Lock Center I.

More questions and answers at Ask Kate Mortgage Rate Lock Center II.



> > Get Rate Lock in Writing

Comments for Get Mortgage Rate Lock In Writing.

Click here to add your own comment.

Lender locked in a VA rate and I needed a conventional rate. What is the recourse?
by: Jackie C from Tennessee

On June 20th, my lender locked in the interest rate on my $205,000 loan at 4.25%. She called yesterday and said that she locked it as a VA loan!

Now I no longer have a locked in rate!

AND I am supposed to close on Monday!

AND she said yesterday that it would be at 4.75%!

What should I do? Is there any recourse? I have the lock in rate @4.25 in writing...but I do see NOW that it says VA.

Hi Jackie, Kate here...

Most importantly, it is the responsibility of your mortgage originator to lock your rate correctly.

Taking it one step further, it is the ultimate responsibility of her mortgage company who employs her. In fact, mortgage companies should have quality control measures in place to stop this from happening!

Would it have been helpful if you'd caught her error? Of course. But do not accept responsibility for the mess she's made.

You have every right to lean on them hard to close your transaction as soon as possible with the quoted interest rate in the lock agreement. And don't be apologetic about it!

Go to Can Mortgage Brokers Lock My Interest Rate and scroll down to the comment section to see what I just told Carlos. The steps to recover his locked rate will be helpful in your situation also!

Best wishes, Kate

Click here to add your own comment.

You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

Recent Articles

  1. Kate's Mortgage Rate Report August 11: Rates Bouncing Like a Ping Pong Ball

    Aug 11, 16 10:49 AM

    Kate's mortgage rate report for the week ending August 11, 2016: Rates Bouncing Like a Ping Pong Ball
    Mortgage interest rates have been bouncing like a ping pong ball: After last Friday's strong job report began pushing up mortgage rates, the market is now hinting at a reversal, with the 30-year hover…

    Read more

  2. Ask Kate how to avoid unauthorized mortgage rate extension fees

    Aug 11, 16 10:18 AM

    Ask Kate how to avoid unauthorized mortgage rate extension fees
    Ask Kate how to avoid unauthorized mortgage rate extension fees:

    After locking in her rate, the bank sent a Texan homeowner, Laura, notification of several thousand in fees that she must pay in order…

    Read more