Slightly Annoyed – Locked Interest Rate

[Searching4Homes]

I read here that the rate locks the day we submit the signed and dated purchase contract. My offer was accepted on 02/18/2018 and it was sent in on 02/19/2018.

I’m told that because the it wasn’t entered in the system I can’t lock the rate of 4.125% on 02/19 and would need to take the higher rate of 4.25% which was the rate on 02.20.. I understand Monday (02/19) was a holiday, but on the NACA website it stated the rate was 4.125%.

So am I to understand we can only lock rates on business days?

[TTrumble]

Hello Searching4Homes,

Long story short, a submission of any sort isn’t complete until it has been received. We have no way of knowing that a P&S has been submitted until we see it, so we can only lock in the date on the date we review the document and enter it in the system. In 99% of cases it is sent, received and entered into the system same day. In this case though, the holiday caused us to not see it until Tuesday.

Considering that the increase was almost certainly due to weekend market activity, if Monday had been a normal business day the rate would have probably gone up then instead of Tuesday. As such, you probably would have gotten the 4.25% rate anyway. And since the rate changes automatically parallel to market changes, there is no way to retroactively change it.

I’m sorry about the bad timing, but you’re still at a below-market rate, and are safe from any further increases from this point forward.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[nacaplease]

The rate posted on the website is more an idea of the applicable rate than the actual one. Often the rate is lower than that posted and there is no indication that the rate is confirmed or updated on a daily basis.

In terms of a rate lock, during business days is a reasonable assumption.

[TTrumble]

Hello all,

Just to add a point of clarification to what nacaplease wrote, sometimes the rates from either BOA or Citi may vary by a fraction of a percent from each other. Additionally, while it is VERY rare, the rate can change during the course of a day, and sometimes even multiple times in one day.

NACA automatically posts the higher of the two ACTUAL rates on our website. Therefore, while most of the time you will get the posted rate, we can on occasion give the member a pleasant surprise.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[HoustonNacaProud]

If the interest rate is lowered at some point of time AFTER you are already locked in at a higher interest rate, is there anything that can be down to lock in the new lower rate?

[brosenterprises]

Hi @HoustonNacaProud, I believe the answer is no. Once your interest rate is locked, it’s locked for 365 days.

[JHarris981]

@Searching4Homes do you mind if I email you directly? Do these forums provide a way for members to contact each other directly via private message or email? I know no one probably feels comfortable putting their email addresses on an open forum. It would be great to send each other private messages when we have specific questions for specific individuals.

[Searching4Homes]

Hello @JHarris981,

I don’t mind at all.

Email: searching4homes2018@outlook.com

[TTrumble]

Hello HoustonNacaProud,

Your rate is indeed locked for a year, and while there is no way for it to be brought down other than interest rate buy down, there is also no way for it to go up, which we may well see happen again this fall.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[TTrumble]

Hello JHaris981 and Searching4Homes,

As I’ve noted here several times in the past, if any members want to contact each other directly, just email me with the information and I’ll be happy to help you make the connection. This way your information stays confidential. I have done this numerous times for krsfnbs, rashad3000, pratik and others.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

• This reply was modified 4 years, 1 month ago by TTrumble.

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