Interest Rate Lock-In Disappointment

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This topic contains 3 replies, has 2 voices, and was last updated by  dreamhome2018 5 months, 1 week ago.

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    I’ve been following the forums for a while. I’d read on here several times where @ttrumble said that your interest rate locks in the moment you submit your signed P&S agreement to NACA. I submitted mine on October 31, 2018, a Wednesday. At the time the interest rate was 4.375%. I received my loan estimate yesterday, November 8th with a starting rate of 4.5%. That interest rate increased this week but since I submitted my P&S agreement the prior week I thought I was safe from any increases. I even talked with my MC about this, even using Tim Trumble’s name to strengthen my case but I couldn’t get it changed. My MC said it is not locked in when you submit the agreement to NACA. Bottom line is that it seems your rate is not locked in until you get your loan estimate. I received my estimate over a week after I submitted the contract, at which point the interest had gone up. Unfortunately now my buy down increases. Just wanted to share this with any others, whom it may help. @ttrumle has the rule essentially changed now regarding when the rate locks in? I’m definitely disappointed about it.



    the rate is locked in when NACA processes the P&S agreement. Therefore, in theory, the rate locks in when you submit it as long as NACA processes it right away. Also, remember that the rate on the NACA’s website is not 100% accurate, I think they try to keep it as updated as possible. They also have 2 different lenders, BOA and CITI and they may have different rates too


    @southflorida thanks for the feedback. Looking at the forums it seems that it is rarely processed right away. I think it might be more accurate to tell members that your rate is locked in once you receive your loan estimate. There is no way of really knowing when the P&S agreement is processed. I wouldn’t have thought it would take a week to be processed. The rate on NACA’s website had been 4.375% for a long time. It was 4.375% all the way up until Monday or Tuesday of this week; therefore, I think it was up-to-date. Regarding the 2 different lenders and rates, it is true that they have different rates but the rate published on NACA’s site is generally the higher of the two, not the lower. I wouldn’t have been disappointed had I not read on the forum several times that the rate is locked in “when your P&S agreement is submitted”. That’s what @ttrumble had posted several times on this forum and I was counting on that. I listed my experience as a reference for others. I think it’s safe and accurate to say that your interest rate is locked in once you receive your loan estimate.


    I just wanted to provide an update to this in case anyone runs into this issue in the future. After Tim Trumble’s advise to try to get my rate adjusted (please see that post here – I was successfully able to talk with the National Director about my situation. In short, your rate locks in once the P&S agreement is processed (i.e. the data entry is completed). So if the rate of the day is 4.375% on the day you submit your P&S agreement to NACA and it takes someone an additional 2-3 days to process it (as was the case in my situation) and the rate increases in that span of time then you will be locked in with the increased rate. It will not matter that you submitted it before the rate increased (or decreased). I was disappointed about it because if it had been processed quicker then I would have locked in the 4.375% rate. The National Director said his hands were tied because the information had been submitted to the bank and it could not be changed. @ttrumble thank you for encouraging me to try and I’m glad I did so. I would have saved a substantial amount had my rate locked in at 4.375%, so I thought it was worth trying. Discussing the situation with the Director was helpful too. He understood my frustration. I do hope in the future that NACA will elect to make it policy that rates are locked in the moment your P&S agreement is submitted regardless of whether or not the agreement is in fact processed/data-entry-completed that day or days later. From taking with the Director I found out that I’m not the first person that this has happened to (I didn’t think I was). So perhaps if more members submit feedback about this then the policy will be changed. Here’s hoping so, as I’m sure it will help some other members in the future.

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