Rate Lock Policy
At Brighton Bank, we offer locks for 30, 45, and 60-day periods. Refinance transactions may be locked at the time of loan application. Purchase transactions may be locked once you have a signed contract on a property.
How Do I Lock My Rate?
You should contact your loan officer to request your rate lock when you sign your disclosures. The Loan Officer will review your application and will contact you the same business day to lock in your rate.
Are Any Fees Collected When I Lock?
No, there are no fees collected to lock in an interest rate.
How Long Of A Lock Should I Take?
Most of our customers lock for 30-45 days which is plenty of time to close your loan as long as all parties do their part. On a purchase transaction, you want to ensure your lock period at least runs through the scheduled closing date. On refinance transactions involving the subordination of an existing second mortgage or home equity line of credit, we require a 60-day lock.
What Happens If The Loan Process Takes Longer Than My Lock Period?
If we cause the delay, we will extend the lock at no cost. If you or a third-party service provider causes the delay, your rate lock will be extended according to our extension or relock policy. Extensions are made with an adjustment to your points/credit of .25% for every 10 days needed at the end of your rate lock. If you let your rate lock expire and relock within 30 days, your pricing will be the higher of the pricing in place on the date of your original lock or the date of your new lock plus an additional cost of .25%.
Delays caused by you or a third-party service provider include but are not limited to: requesting subordination of an existing second mortgage or home equity line of credit; not supplying documentation in a timely manner; providing inaccurate, inadequate, obsolete or incomplete documentation or loan information; changes in loan terms or loan programs; HOA delays in completing and returning questionnaires; delays by a title company, closing agent or appraiser; and delayed appraisal inspections, termite inspections, not acknowledging receipt of a Loan Estimate or Closing Disclosure the same day, survey inspections or document signing appointments. If you believe any of these issues may occur on your loan, you may want to consider a longer lock period.
Can I Choose A Different Rate Or Loan Product After I’ve Locked?
Yes. You may change the rate and corresponding points/credit from the rates/programs available when you locked. Your revised lock will be based on the pricing in effect for that rate and program on the date of your original lock.
Can I Change My Decision Regarding An Escrow Account After I’ve Locked My Rate?
You may change your decision as to whether or not you want to set up an escrow account for the payment of your taxes and insurance. Establishing an escrow account improves your points/rebate by .25%. Your points/rebate will be adjusted by .25%, just as if you had made that decision at the time of your lock.
Can I Extend The Lock If I Need More Time?
We understand that delays can happen, so Brighton Bank allows you to extend the rate lock during the process with an adjustment to your points/rebate of .25% for each 10-day extension. The total extension cannot exceed 30 days. It’s always best to take the time upfront to choose the lock period that is best for you and provides ample time. It’s more expensive to add the time later than it is to choose the longer time period upfront.
Can I Relock My Rate If I Cancel My Application And Reapply?
If you cancel your application and reapply within 30 days of your cancellation date, your pricing will be the higher of the pricing in place on the date of your original lock or the date of your new lock, plus an additional cost of .25%. If 30 days have passed since your cancellation date, your lock will be based on the pricing in effect at the time of the new lock.
What Happens If I Let My Rate Lock Expire?
If you let your rate lock expire and relock within 30 days, your pricing will be the higher of the pricing in place on the date of your original lock or the date of your new lock plus an additional cost of .25%.
Should I Lock Or Float My Rate?
On a refinance transaction, if the savings you will achieve with the new lower rate will recapture the closing costs of the loan in a relatively short period of time, you should probably go ahead and lock your rate and close your loan. Trying to time the bottom of an interest rate cycle is tricky and each month you delay costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again.
On purchase transactions, in times of stable interest rates, most of our customers lock when they are within 45-60 days of closing. Locking for a period longer than 30 days increases the cost of the loan slightly but is sometimes a good idea if rates are volatile.