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TODAYS RATE MAY BE GONE TOMORROW
Interest rates fluctuate continually. Sometimes, rates can change more than once a day, so it is important for you to understand that a rate you see advertised in a newspaper or hear about on the radio or television may not be available even later on in that same day. Often, by the time the print or electronic media is produced, the market has changed.
Because of this, you need to know that when you first apply for a loan, the rate available on that day is subject to change up until a "LOCK" is obtained from the Lender. Once a Lock is obtained, the rate committed to will be available only for the length of the Lock term, typically 30 days. Missing the deadline on your "locked" rate by extending a sale escrow or failing to provide requested paperwork in a timely manner, may trigger additional fees from the lender or cause the locked rate to be completely lost. In a rising rate market, this can damage your ability to qualify or afford the loan.
Rates are tied to several different indexes including the Bond market, Bank Cost of Savings Index, LIBOR, and others industry indexes.
For more information on Rate Locks and how they can impact your situation, please feel free to contact me.
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