Answers to your questions FAQ Index | General | Mortgage Tools | Rates & Costs | Loan Decision | Closing   How often do interest rates change?     Interest rates change regularly with the fluctuation of the market. The interest rates we quote on the site are good for two hours. If a quote expires, you will be prompted to resubmit your customer's application to receive an updated quote. Of course, once you lock or protect your customer's rate, it will not increase as long as they close and fund their loan on or before the rate expiration date.   Back to FAQ index   How can my customer customize their rate?     Once you submit your customer's information, we will recommend a loan program for them. This program will be associated with a specific interest rate and possibly with points. If your customer would like, you will have the ability to help them customize this rate. You can add or subtract points and see how this changes their rate and monthly payment. You also may be able to offer your customers the opportunity to roll closing costs into either the loan amount or interest rate. Once your customer selects the program that best fits their financial objectives you will be presented with different rate options for their loan. An interest rate is not locked until you request to lock the rate and submit.   Back to FAQ index   What factors go into determining my customer's personalized rate?     We evaluate your customer's credit history and reward good credit with a better rate. We also take into account your customer's loan to value or LTV, as well as income, assets, the purpose of the loan and how they intend to occupy the property. Naturally, all of this is impacted by the current market conditions.   Back to FAQ index   Can I lock in a loan program and interest rate for my customer online?     Absolutely! Simply complete the loan process for your customer, choose their loan program, and you'll be one click away from locking their rate. Once you have helped your customer to choose their rate lock option, funds will need to be reserved with a {{ls_app_fee}} NONREFUNDABLE fee (charged to a credit card). Then click SUBMIT and the loan application is complete. No need to call. No need to wait for someone to call you or your customer. You are in control!   Back to FAQ index   Once my customer has selected a program, what are their rate options?     You will be presented with rate options that are applicable to your customer's loan purpose, closing date and qualification. The possible options are listed below.     Rate Protection Rate protection gives your customer the opportunity to take advantage of a decreasing interest rate market with the confidence that if the market increases, they are protected. A cap is added to the interest rate. The capped rate is the maximum interest rate that will be paid, even if rates increase, as long as your customer closes and funds their loan by the lock expiration date. However, if rates drop, your customer will have a one-time option to lock in at a lower rate. To do this, they just need to call their loan counselor on the day they would like to lock in the lower rate. If your customer is refinancing, they can exercise the float down option if they are within 15 days of closing. For both purchases and refinances, borrowers must lock at least 5 days prior to closing. Rate Lock By locking in a rate, your customer will have committed to the rate and point combination that has been presented. Once the rate is locked, the rate and point combination will not change—regardless of what happens with interest rates—as long as your customer closes and funds their loan by the lock expiration date. Rate Float By opting to float, your customer will have not selected or committed to any rate and point combination. Therefore, the ultimate rate is subject to both up and down market fluctuations until they decide to either rate-protect or lock their rate. If your customer chooses to float, they will have up until 5 days prior to closing to lock the rate. If your customer does not choose to lock, the rate will be locked at the current market rate 5 days prior to closing.   Back to FAQ index   When can my customer lock their rate?     If your customer has a contract on a property and is within 90 days of closing they can lock their rate. If your customer is purchasing, and they have selected the rate protect option, they can lock within 60 days of closing. If your customer is refinancing, and have selected the rate protect option, they can lock between 15 and five days of closing. With all programs, rate must be locked at least five days prior to closing.   Back to FAQ index   What if interest rates go down after my customers lock their rate?     Once your customer locks the rate, it cannot be changed. For that reason, it's important for you and your customers to consider carefully the timing of the rate lock. If your customer follows the market or plans to watch it closely, encourage them to be comfortable with the trends they see before they lock. Customers may want to consider our rate protection program to help safeguard against changes in interest rates.   Back to FAQ index   What happens if my customer's loan does not close before the rate lock expiration date?     When your customer locks their interest rate, they are guaranteed to receive that rate as long as they close and fund their loan by the specified expiration date. If their loan closes and funds after this date, the locked interest rate is no longer guaranteed. Instead, your customer will receive the higher of the current market rate or the locked rate. Please note that your customer cannot receive a lower rate by allowing te rate lock to expire.   Back to FAQ index   If my customer has selected rate protection and does not exercise the one-time float down option, what will happen?     If your customer has not exercised their one-time option to float down, the rate will automatically be locked at the market rate, five days prior to the closing date. If the rate has gone up and over the capped rate, the borrower will receive the capped rate. If the rate is lower than the cap, it will be locked in at the lowest rate available to the borrower.   Back to FAQ index   What are points?     Points are a percentage of the loan amount paid at closing that affect the interest rate. For instance, on a $90,000 loan, 1 point = 1% or $900. How it works is that if a borrower pays points, they buy down the rate. Alternatively, in exchange for a higher rate, the lender pays points to offset closing costs. These are considered negative points. Negative points may be a wise option if a borrower has limited funds to use at closing. Points are also disclosed as discount points. Whatever the name, they are itemized on the Good Faith Estimate and are typically paid at closing.   Back to FAQ index   Are discount points tax deductible?     In many cases they are. Customers should contact their tax preparer or the IRS to obtain a qualified opinion and the best expert advice.   Back to FAQ index   If my customer is short on cash, are there options to help with down payment and closing costs?     There are a number of options that may help a borrower without much cash to purchase a home. Look into one of our low down payment programs. These programs may require as little as 3% for a down payment. Borrowers who meet the criteria will be offered the option to roll closing costs into either the loan amount or the interest rate. For borrowers who choose the loan amount option, we will take the amount due at closing and add that to the loan amount. The amount due over the life of the loan will increase but the amount needed to bring to closing will decrease. If borrowers choose the interest rate option, then the rate for the life of the loan will increase, as will the monthly payment, but the amount of cash needed at closing will decrease. Borrowers can also consider negative points. This means that in exchange for a higher rate, we will contribute funds towards closing costs.   Back to FAQ index