Since mortgage interest rates are constantly changing, we offer the option of "locking-in" a current Westerra Credit Union rate to protect you against an increase during the loan process. Once your loan rate is locked, you will receive this rate no matter which way rates move. This means that the loan amount you qualify for today will still be the same when the loan closes.
You can lock-in an interest rate and discount points if you:
· Supply us with a purchase and sale agreement on the property you want to buy.
· Submit a completed Westerra Credit Union loan application.
· Pay the required prepaid application deposit of $65 to cover the cost of the credit report. This deposit will be credited toward your closing costs.
Once these requirements are met contact us at 1-800-858-7212 ext. 4570 to request a rate lock.
Already found a home?
Then you should consider locking in your interest rate.
You have two choices:
· Westerra Credit Union’s Standard Lock:
This lock applies to fixed rate mortgages with terms of 15, 20, or 30 years. The interest rate can be locked for periods of 30, 45, 60, or 90 days. Locks longer than 45 days will have slightly higher discount points, which increase the overall cost of obtaining the mortgage.
· Float-Down Lock (The best of both worlds):
This lock-in option is available on all Adjustable Rate Mortgages (ARM) products as well as our 10 year fixed product. Under this option the interest rate is locked for a standard 45 days during the loan process and can "float down" to a lower Westerra Credit Union offered rate, should rates decline for your loan during the loan process. This float down rate adjustment can be exercised during the lock period up to (5) business days prior to closing.
Constraints: The borrower and/or seller understand that upon acceptance of the locked-in term outlined below: 1) this agreement is subject to credit, appraisal, and documentation requirements which includes compliance with all underwriting guidelines and payment of all required and allowable fees; 2) lock-in terms 3) upon loan approval, borrower agrees to close the loan at the quoted interest rate and discount; 4) if the quote expires, the member will receive the higher of the current rate or the expired locked-in rate; 5) if program type or loan amount changes member may be required to pay additional lock fees; 6) in the event the documents obtained by Westerra CU expire and it is necessary to update such documents, Westerra CU may charge you for the additional direct costs and 7) all extended and long term lock fees will be earned by Westerra CU unless specifically stated otherwise by addendum to this agreement.
Adjustable rate portfolio products are priced with a special flow down feature that permits a one time downward rate adjustment. This flow down rate adjustment can be exercised during the lock period up to 5 business days prior to closing.
