Wednesday, September 8th, 2021
RE: Locking in your interest rate – Can you still make changes?
Debbie’s co-host today is, mortgage educator and loan officer, Larry Ehrlich, or more lovingly referred to at the company as, our mortgage dad 🙂
At the top of the show they discuss the incredibly hot weather in Valencia, Debbie’s new pink boat and other fun topics like “pumpkin spice weather.”
Debbie tells her audience that her team is a “One Stop Shop” and are here to help seven days a week. The team is very reachable. Quoting Debbie, “All you have to do is reach out, no matter what state you are in!” If you are looking to buy, sell, refinance, or all three, they can get you moved forward in the right direction.
Debbie and Larry jump into Mortgage after their quick catch up and begin to discuss the dynamics of locking in your interest rate. When clients ask about locking in rates, Larry says that rates are always constantly changing and that it’s always a risk as to whether it will be decent one day but better the next, and vice versa.
Diving deeper, interest rates are based upon the client’s FICO score and financial history says Debbie. She also says that the applications need to be filled out completely in order to get an accurate interest rate, especially when it comes to your debt to income ratio. Larry says that once you are locked into a rate you are locked in! If the rates get worse during your lock period, you are still locked in. Or if the rates get better, you are locked in! So it can go both ways. The market is very volatile says Larry.
Debbie mentions that in order to keep the locked in “agreed upon” rate, the client must be ready within that rate lock period, typically 30 days. If you are not ready to close within your rate lock term, an extension fee will be incurred. We want to avoid that if at all possible. How do you make sure that you do not get hit with that rate lock extension fee? Be responsive and get in all of your documentation as fast as possible upon request.
Debbie discusses the rate lock being tied to the day that it was requested, not your loan amount or loan program or term. All of those things can be changed along the way but your interest rate is tied to the rate sheet and what was available on the rate sheet issued when the lock was originally requested.
Larry’s opinion, “If clients are happy with their rate, lock it, especially because rates are on an upward trend at this time within the market.”
The Mortgage Mom team is here every step of the way to help their clients through the application process. Debbie says, “Use the Mortgage Mom Radio App, send us an e-mail or just call in! Getting a free phone consultation is your first step in this process!” The whole goal of Mortgage Mom Radio is to create a game plan for our clients and to educate them. It is the very best way to see your goal past the finish line.
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Debbie Marcoux is licensed by the Department of Financial Innovations under the California Residential Mortgage Lending Act, NMLS ID 237926, also licensed in AZ-0941504, FL-LO76508, GA-69178, ID – MLO 2080237926, IL-031.0058339, NV-57237, OR, TN-184373, TX, WA-MLO-237926