The interest rate market is subject to movements without advance notice. Locking in a rate protects you from the time that your lock is confirmed to the day that your lock period expires.
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 terms 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.
When Can I Lock?
You may lock in during the business day in which you submitted your application or on any available business day thereafter but not later than three business days prior to your scheduled closing. 1
Do I Have To Lock-In?
No. You can choose to float (not lock) your interest rate until three business days prior to your scheduled closing, at which time the Real Estate Department will automatically fix your rate to the prevailing interest rate in effect on that day. Choosing not to lock your rate prior to the final approval of your loan may result in a delay in your preferred loan closing time and may affect your ability to qualify for the loan which you have applied for.
How Do I Lock In?
The following are the procedures to lock the interest rate, discount points, and term (including loan amount and mortgage type):
- Telephone the Real Estate Rate Lock Hotline at 800.468.3011, extension 2232 during the business day 1 to lock your interest rate and discount points.
- Rate Lock Staff will complete the Rate Lock Agreement and send the Agreement via facsimile. By signing the Agreement, you acknowledge the stated terms, and will fax the Agreement to 845.432.3390.
- YOUR RATE WILL NOT BE LOCKED UNTIL THE SIGNED AGREEMENT IS RECEIVED BY THE REAL ESTATE RATE LOCK DEPARTMENT. You will receive the rate at the time the Agreement is signed and received by HVFCU. If rates change before you return the signed Agreement, the original lock in request will be null and void and a new Agreement must be negotiated. In the event rates change, HVFCU Staff will contact you to re-execute a new Agreement.
- The rate lock fee will be mailed or dropped off at a branch location, or you can authorize transfer from your HVFCU account or credit card. The mailing address is:
Hudson Valley Federal Credit Union
Attention: Real Estate Rate Locks
159 Barnegat Road
Poughkeepsie NY 12601
- If the rate lock fee is not received within three business days after HVFCU has mailed your initial disclosure documentation, the Agreement may be canceled at the discretion of HVFCU and you will receive either the original locked in rate or the current market rate, whichever is higher.
Rate Lock Disclosure
You may lock your interest rate, discount points, and term of loan at any time as described below up to three business days prior to your closing. Changes to your interest rate, discount points, and term (including loan amount and mortgage type) will not be permitted once you have chosen a Rate Lock Option. If you do not notify HVFCU to lock your interest rate and term, you will receive the prevailing rate three business days prior to your closing pursuant to the conditions above. You understand that interest rates and discount points are subject to change without notice and it is your responsibility to monitor HVFCU’s interest rates and loan terms during the period in which you choose to float.
If you choose to lock in your interest rate, you will be required to sign a Rate Lock Agreement. On signing, you agree to pay $600, which is refunded at closing. If a mortgage application with a signed Rate Lock Agreement is canceled at any time, the $600 is forfeited. In the absence of a signed Rate Lock Agreement you receive the prevailing rate three business days prior to closing.
If you are applying for a Construction/ Permanent Mortgage, or have subject property that is new construction, you may choose to sign a Rate Lock Agreement either prior to the permanent loan closing, or prior to 100% completion of the construction for the subject property. Construction must be 100% complete prior to the signed Rate Lock Agreement expiration date. Extended rate lock options are available. Please inquire for further information.
We charge a refundable fee of $600 for locking in your interest rate. If your mortgage application is canceled at any time, you forfeit the $600 fee. We also offer extended rate lock options for additional non-refundable fees.
We currently offer a 60 day lock-in period at no extra cost. Your loan must close and disburse within the number of days from the day your lock is specified. For additional fee, longer term lock periods are available.
After you accept a rate lock, the Real Estate Department will confirm your interest rate and discount points between the hours of 11:30 a.m. and 4:00 p.m. EST Monday thorough Friday, excluding HVFCU observed holidays and holiday hours observed by the financial markets. Your rate lock is not valid unless it is signed by both you and an HVFCU Real Estate Department Representative.
Once we accept your lock, your loan is committed into a secondary market transaction. Therefore, we are not able to renegotiate lock commitments. If you choose a 60 day lock period and you do not close by the expiration date, you may pay additional fees for a rate extension. Contact your Mortgage Loan Officer for more information.
1 A business day is defined as Monday through Friday between the hours of 11:30 am and 4:00 pm EST, excluding HVFCU observed holidays and holiday hours observed by the financial markets. Also, excluded are holiday hours that the FHLMC Cash Desk observes (i.e. The Securities Industry and Financial Markets Calendar) but the HVFCU is open (e.g. Good Friday). Nor will we be able to Rate Lock your loan if we are unable for any reason to Rate Lock with the FHLMC Cash Desk.