FAQ

Locking

6 questions

What exactly does “locking” mean?

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A mortgage rate lock is an agreement between a borrower and Loan Cabin that allows the borrower to lock in the interest rate on a mortgage over a specified time period at the current market interest rate. Loan Cabin guarantees your interest rate will not change from the offer rate to the closing, as long as you close within the specified time frame and there are no changes to your application.

How long should I lock for?

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Most of our customers lock for 30 days, which is plenty of time to close your loan as long as all parties do their best to close with us. On a purchase transaction, you want to make       sure your lock period at least runs through the scheduled date of your closing. On refinance transactions involving the subordination of an existing second mortgage or home equity line of credit we recommend a 45 day lock.

Can I choose a different rate or loan product after I lock?

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Yes. You’ll be locking in all the loan products you see when viewing “Today’s rates”. This means you can change your rate, your rate type (fixed vs. adjustable), or your loan term (15, 20, 30).

What if I need to break my lock?

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You are free to withdraw your application and break your lock at any time. There is no fee for doing so. However, you won’t be able to lock a rate with us for the same property for 30 days.

What if my lock expires before my loan is complete?

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We will extend your lock if it expires before your loan closes. If the loan delay was caused due to any complications on our end, we will waive the lock extension fee.

If interest rates drop once I have already locked, am I able to get a better interest rate?

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When market conditions improve significantly from the initial lock date, Loan Cabin will allow a onetime renegotiation under the following guidelines. Please contact the lock desk for a quote.

• Minimum .25% market interest rate improvement for the same or better price to be eligible for float down, comparing original and current price for same lock period and loan data