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MORTGAGE LOAN RATE LOCK POLICY
Members may lock the interest rate for their loan for a period up to
150 days. The lock period is the period of time during which the interest
rate will not be raised or lowered if the closing occurs within the lock
period. The member has the option of locking the interest rate from the time
an application is submitted, until three (3) calendar days before the closing
date. The table below references the Rate Lock Terms available, the Rate
Lock Deposit, and any additional
Rate Lock Fee needed to lock in the rate for a specific time period.
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Product and
Rate Lock Term
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Rate Lock Fee
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Purchases – Fixed Rate |
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60 Days |
Free |
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90 Days |
.25% |
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120 Days |
.625% |
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Purchases - ARM Loans |
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90 Days |
Free |
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120 Days |
.25% |
150 Days |
.50% |
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Refinances - Fixed Rate and ARMs |
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35 Days |
Free |
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60 Days |
.25% |
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90 Days |
.50% |
The rate lock deposit amount is the lesser of 1% of the loan
amount or $2,000.
HOW CAN A
MEMBER LOCK THEIR INTEREST RATE AFTER APPLICATION?
Members can lock their loan rate until three (3) calendar days before
the closing in two different ways:
1. By calling PFFCU and speaking with your Mortgage Advisor.
The Mortgage Advisor will complete the Rate Lock Request Agreement with you
over the phone. We will mail you a confirmation once your rate has been locked.
2. In person, by visiting the PFFCU Loan Center at 2837
Southampton Road, Philadelphia, PA 19154, during regular business hours (8:30a.m.
- 4:00 p.m.) and completing a Rate Lock Request Agreement.
WHAT
DECISIONS MUST A MEMBER MAKE IN ORDER TO LOCK THEIR INTEREST RATE?
A member must select the loan amount, rate, points, and term of the loan.
The member must also select the account number and share number in which the
rate lock deposit will be frozen.
WHAT IS THE RATE
LOCK DEPOSIT?
The Rate Lock Deposit allows members to lock their mortgage loan rate by
making a refundable deposit of the lesser of 1% of the loan amount or $2,000.
The deposit will be frozen in the member’s account at the time of the rate
lock, and unfrozen at closing, if the loan closes within the lock period at the
amount, rate, points and term that were selected when the rate was locked. The
deposit will also be refunded if the application is denied by, or the closing
is postponed by PFFCU. The rate will not be locked until the deposit is frozen
in the member’s
account.
WHAT IS THE
RATE LOCK FEE?
The Rate Lock Fee
allows members to lock their mortgage loan rate for a longer term than what
PFFCU provides for free. The Rate Lock Fee depends on the term you choose,
and is a percentage of the loan amount, as reflected in the table above. The
fee
will be collected when the loan is closed.
UNDER WHAT
CIRCUMSTANCES WILL THE RATE LOCK DEPOSIT BE FORFEITED?
The rate lock
deposit will be forfeited if the member does any of the following:
1. Fails to provide all
necessary information to process the mortgage application in a timely manner;
2. Provides any
significantly inaccurate information or omits significant information from
the application;
3.
Withdraws the
mortgage application; or
4.
Changes the type,
term, rate, points, property address or loan amount.
If the rate lock
deposit is forfeited, you will have the option to do one of the following:
1.
Relock your rate any time up to three (3) calendar days prior to closing.
Another rate lock deposit will be frozen in the member’s
account at the time of the relock.
2.
If the rate is not re-locked, it will automatically be locked, at the PFFCU
rate in effect three (3) calendar days before closing.
WHAT IF THE
TERM OF THE RATE LOCK EXPIRES PRIOR TO THE CLOSING DATE?
If the term of the rate lock expires prior to closing, and the delays are
not caused by PFFCU, the rate lock deposit will be forfeited, even if the loan
eventually closes. In the event, the rate lock expires prior to the closing date,
and the member subsequently chooses to close the loan, the member can relock
the rate with an additional deposit OR the member will receive the interest
rate three (3) calendar days prior to the loan closing date.
WHAT IF A
MEMBER DOES NOT LOCK THE RATE?
PFFCU will automatically lock the rate for a mortgage loan three (3) calendar
days prior to closing if the member does not do so before that time. The three
calendar days do not include the date of closing. If the third day is a Saturday,
Sunday, or any other day when PFFCU is not open for business, the rate from the
last prior business day will apply.
Important Reminder: A rate is not locked
or guaranteed until a member completes the
steps above and the required deposit is
frozen in the member's account.
The Mortgage Rate Lock Agreement is not an approval of any mortgage application
or a commitment from PFFCU to approve or fund any mortgage.
Questions?
Email us or
call us at 215/931-0300 or 800/228-8801 and ask to speak to
a Mortgage Advisor.
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