Addison Avenue Federal Credit Union currently offers a standard 45-day lock at no cost. In the event you will not be able to close within 45 days, we also offer an extended lock option, at an additional cost to fees2, for up to 90 days from submission of a complete loan application package*. If you would like an extended lock period, please make your – more... request upon loan submission so that we can lock your rate and schedule your closing date accordingly.
Should your loan not close within the designated lock period your interest rate will have to be re-established for a new lock period. Generally, the new interest rate will be set from the rate sheet in effect the day your lock expires. However, if you have already taken advantage of the float down provision3, and rates have decreased since the original lock, the interest rate cannot be locked for a lower rate and fee.
The Lock Process; The lock process varies with the loan type as outlined below.
The Credit Union's Portfolio1 loans; Provide an automatic lock for 45 days at the current rate in effect on the day the Credit Union receives a complete loan application.
The Credit Union's Secondary Market loans; All Interest-Only ARM products and 20, 30 and 40-year Conforming Fixed Rate First Mortgages are NOT automatically locked upon receipt of the application. Generally, you may select a 30-day lock once you have been issued conditional approval. We will then lock** the loan at your request.
Secondary Market Rates are subject to change without notice. Locks must be requested prior to 1:30 Pacific Time.
Heloc (Home Equity Line of Credit) Mortgages are NOT eligible for rate lock. Helocs are variable rate loans that will adjust with changes in the WSJ (Wall Street Journal) Prime Rate. The initial rate for Helocs will be established the date your loan documents are drawn.
*What constitutes a complete application? A loan application is considered "complete" when the member has named a property and has entered accurate information in all necessary sections of the application so that the underwriter can successfully analyze the loan file and render a decision. If the Credit Union determines that your application is incomplete, a representative will contact you to obtain the information. Your loan cannot be locked until the Credit Union is in receipt of the information necessary to continue with the loan process.
Pre-quals or Pre-approvals are not considered complete applications and cannot be locked until a property is secured and the Credit Union receives a copy of the signed purchase contract.
What happens if rates go down after I lock my loan? The Credit Union offers a one-time Interest Rate Float Down Provision for our Portfolio1 Programs, which allows you to benefit from a falling interest rate market.
**For Secondary Market Mortgages, the Float Down Provision does NOT apply and should interest rates decrease, you must still honor the lock. The Credit Union does not renegotiate locks with our investors. While we would like to renegotiate locks on your behalf, our investors are not able to do so. For this reason, we recommend that you carefully consider the timing of your lock. – less – More from ZoomInfo »
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