Imagine this scenario: you've gone through the Mortgage application process, locked in your interest rate, and then interest rates unexpectedly drop. Suddenly, you're stuck with a higher rate than currently available, leaving you feeling like you've missed out on a better deal. But with a Mortgage rate float down, you can breathe a sigh of relief, knowing that you can secure a lower rate if the market shifts in your favor.
That's where a Mortgage rate float down comes in. Some lenders, including Lisle Savings Bank, offer this feature to allow you to get a lower interest rate after you've locked your rate, but before everything's finalized. Here's what you need to know!
Locking in Your Rate: When you apply for a Mortgage, you can lock in your interest rate for a set period, typically between 30 and 75 days, depending on the lender. At Lisle Savings Bank, you’ll enjoy a 75-day Mortgage rate lock. Call for details. This lock-in agreement ensures your rate remains the same once you’re locked in despite any market fluctuations.
Taking Advantage of a Decrease: If interest rates drop after you've locked in your rate, but before your closing, you can request a Mortgage rate float down. This means you can ask to adjust your locked rate to match the current, lower market rate.
Checking the Fine Print: It's crucial to understand that Mortgage rate float-down policies can vary from lender to lender. Take the time to carefully review the terms and conditions of your rate lock agreement. Some lenders, like Lisle Savings Bank, offer a Mortgage rate float down at no cost, while others may charge a fee or impose certain conditions. Knowing these details can help you make the most of this feature.
Timing and Eligibility: Ensure you meet any timing and eligibility requirements for a Mortgage rate float down. You might need to request the float down within a specific window before your loan closes, and the new rate might only kick in if certain conditions are met, like maintaining a solid credit score or providing extra documentation.
We’re proud to offer the convenience of a complimentary Mortgage rate lock and rate float down when you secure a mortgage with us. You don't need to submit a request, as it is done automatically. Call us at 630.852.3710 for more details and to speak with one of our knowledgeable, local Loan Officers.