The lender for a move-in ready property offered me a 4.99% fixed rate as part of a year-end special. They mentioned it would cost them over $60k to maintain this rate so no additional incentives were offered. After I sent the deposit, I received the disclosures, including an Interest Rate Float disclosure. This disclosure indicates that I am choosing to let my rate float and that I have decided not to lock my rate, which I never stated. Could they still honor the 4.99% rate if market rates decrease? Is it normal to receive a float disclosure without requesting it, or is something off here?
Unless you’ve explicitly asked your loan officer to lock the rate, they won’t do it, which means your rate is floating. If you want the 4.99% rate, confirm the cost hasn’t changed and request them to lock it. It’s common to include a float disclosure if you haven’t asked for your rate to be locked.
@Sky
Does the cost affect me if their offer was a fixed 4.99% regardless?
Cameron said:
@Sky
Does the cost affect me if their offer was a fixed 4.99% regardless?
It depends on the specifics of their offer, but generally, the points you pay can change daily. However, some lenders offer a fixed deal on points as well.
If the property is ready to move into, you probably aren’t floating the rate. I recommend asking to lock the rate before signing anything. Your loan officer likely isn’t trying to mislead you, as they gain nothing from a higher rate. Since delivering the 4.99% rate is costly, it likely is a significant expense. Discuss your concerns directly with your loan officer for clear answers.
@Dallas
If I’m not floating the rate, why was I sent a float disclosure stating I haven’t locked my rate and agreed to let it float? I assumed I would be presented with options before or at the signing.
@Cameron
They might be standard disclosures. I suggest waiting to sign anything until you can speak with your loan officer.
Make sure to ask your loan officer to lock the rate, especially if it’s feasible for the entire duration of the escrow period, like if you’re closing in a few months.
Mica said:
Make sure to ask your loan officer to lock the rate, especially if it’s feasible for the entire duration of the escrow period, like if you’re closing in a few months.
Closing in 1 month
When are you closing? Did they offer to lock the rate for longer than 30 days?
Moe said:
When are you closing? Did they offer to lock the rate for longer than 30 days?
Closing in 1 month
Moe said:
When are you closing? Did they offer to lock the rate for longer than 30 days?
Closing in 1 month
Definitely tell your loan officer to lock it at the offered 4.99% rate then.
@Moe
Thank you for the advice!