When Should A Rate Be Locked In

Answered by:

Question:

I have researched when a rate should be locked in. I say it is before loan closing but I am being told it can be after closing.

Answer:

There is no requirement for a bank to lock a rate for sale on the secondary market. It just depends on whether the bank wants to take the interest rate risk or not. If you are talking about a customer locking a rate, that of course, must be done before the loan closes.

First published on BankersOnline.com 3/4/13