Rate Lock Policy
At AmericanLoan.com, you have the ability to apply and lock rates 24/7. All interest rate lock requests are subject to review and confirmation before they are valid. After you submit a lock request, a member of our lock desk team will work diligently to review your file before confirming your lock. AmericanLoan.com does not charge an additional fee for the rate lock confirmation. Revisions to rate locks can be made, and any pricing adjustments resulting from these revisions will be based on the pricing at the time of your initial lock. It is the responsibility of the borrower to seek a rate lock. However, locking your rate during the application stage is not necessary, should you elect to float your interest rate instead. AmericanLoan.com offers rate lock periods of 30 and 45 days. Generally, the longer the lock period, the worse the pricing will be, if all other terms of the mortgage application are equal. If you lock too early, or if your loan does not close within the initial lock period, then the cost to extend the lock will be determined on a case-by-case basis. Note that AmericanLoan.com reserves the ability to void a rate lock should certain items in your mortgage application change between the time of the rate lock approval and final underwriting.
Lock-In Agreement
A lock is an agreement by the borrower and the lender and specifies the number of days for which a loan's interest rate and discount points are guaranteed. Should interest rates rise during that period, we are obligated to honor the committed rate. Should interest rates fall during that period, the borrower must honor the lock. Immediately after you accept a lock online, a printable confirmation page is displayed for your records. In addition, a confirmation is sent to the email address you provided during your online application.
Lock Revisions
Once we accept your lock, your loan is committed into a secondary market transaction. Therefore, we are not able to renegotiate lock commitments. However, there are certain revisions that can be made to your lock based on the pricing at the time of your original lock. These revisions could be based on:
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changes in loan purpose from a cash-out to a rate-and-term refinance
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changes in appraisal value
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changes in rate and/or discount points
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changes from impound/escrow account to no impound/escrow account
