General Statement
The interest rate market is subject to movements without advance notice. Locking in a rate protects you from the time that your lock in is confirmed to the day that your lock-in period expires.
UNFCU offers members two interest rate options: rate lock-in option and rate "float" option. The member understands that UNFCU cannot predict interest rates. The member acknowledges and understands that this decision has been made solely by the member without advice whatsoever from any UNFCU employee and the member hereby releases UNFCU from any and all responsibility, financial or otherwise, from the members decision to lock in or float the interest rate.
Rate Lock-in Option:
During your commitment period, interest rates may fluctuate. If interest rates go up and you have locked in your rate, you will have the peace of mind of knowing that your interest rate is guaranteed. If the rate goes down, UNFCU gives you the option to float down your interest rate for a nominal fee. Please refer to the buy-down section for details.
At application, the fully executed Interest Rate Lock-in Agreement will be completed by UNFCU and mailed to you for your signature. This agreement will lock in your interest rate for 60 days from your application date.
If your mortgage loan does not close, through no fault of UNFCU, by the expiration date of the lock-in agreement, you agree to accept the higher of your original rate or the then prevailing rate ten (10) business days prior to closing.
Rate Float Option:
The interest rate will "float" (rate undetermined) until ten (10) business days prior to closing your mortgage loan. You agree to accept the prevailing interest rate in effect ten (10) business days prior to closing.
Please note: If you do not lock in at the time of application, you may lock in during the commitment period of 60 days from date of application, up to ten (10) business days prior to closing at the prevailing interest rate. However, your rate will only be locked up until your commitment expiration date. Please read this entire section regarding your options. The rate, however, cannot be locked in without a signed Interest Rate Lock-In Agreement.
Lock-In Agreement
A Lock-in Agreement is an agreement by the borrower and the lender and specifies the number of days for which a mortgage loan's interest rate and points are guaranteed.
Rate Float Down Information for Locked-in Mortgage Loans
Should you choose to lock in your interest rate, UNFCU will honor the lock-in agreement up until your commitment expiration date. The interest rate may fluctuate. If the interest rate goes up, you will have peace of mind of knowing your rate is guaranteed.
If the rate goes down, UNFCU gives you the option of floating down your rate once during the commitment period of 60 days for a fee of three eighths of a percentage point of your mortgage loan amount (.375%) that will be payable at closing. You may Float down your locked mortgage loan interest rate once up to ten (10) business days prior to closing your mortgage loan within your commitment period. You will need to advise us by telephone or email at mortgagecentre@unfcu.com if you would like to take advantage of this float down option.
When Can I Lock in the Rate?
If you would like to lock in your interest rate at application or after submitting your mortgage loan application you can do so by contacting your UNFCU Mortgage Representative.
Rate Lock-in Period
We currently offer a 60-day lock-in period. This means your mortgage loan must close within your commitment period.
Extension Option
UNFCU provides rate extension options for terms of 7 days at a time for a fee of .125% for each 7 day period. The maximum extension period is 28 days for a fee of .5% of your loan amount. The extension fee is payable at closing. Should you not be able to close within the 28 day extension, the rate issued at closing will be the higher of either the rate during the commitment period or the prevailing interest rate ten (10) business days prior to closing. You will pay for any re-certification fees for any documents. The date your documents expire will be stated in your commitment letter.
Rate Lock-in Terms and Conditions:
The lock-in rate is the interest rate only for the type of mortgage loan for which you apply, and is based on the repayment term, mortgage loan amount and points/origination fee you have chosen. You acknowledge and understand that in the event any of these items are revised, the lock-in interest rate is no longer valid and a new lock-in agreement will have to be signed.