Rate Lock-in

A rate lock-in is an agreement from a mortgage lender to hold a specific mortgage interest rate for a specific time period. Think of it as insurance that you'll get your loan at the agreed-upon rate, even if rates rise.

There are typically four elements to a rate lock. They should be clearly shown on the confirmation you receive after you have notified the lender you wish to lock in your rate.

• Interest rate – your rate depends on the market conditions on the date you choose to lock your rate
• Points – funds paid to get a lower interest rate
• Lock period – how long the agreement will be valid
• Loan product – what type of mortgage the agreement applies to

When to lock in your rate
Deciding when to lock in involves some guesswork. No one can predict future interest rates with certainty. At Virginia Credit Union you can lock in a rate at any time during the mortgage application process:

• When we receive your application
• During processing of the loan
• When the loan is approved
• Up to three business days prior to your loan closing

If you are risk averse, you may want to lock in your interest rate early. If you can tolerate a rise in interest rates but would be happy with a lower rate than the current market interest rate, you may be a candidate to “float with the market.”

Locking in your interest rate
After we receive your completed application and property address, you may give us your written lock-in request between 11 a.m. and 3:30 p.m. on any business day

There are three ways to submit your lock-in request:

• Fax a written request to our Real Estate Lending department
• E-mail your loan advisor
• Deliver a written request to a branch

Your request should include the specific rate and points available that day which you wish to lock in and be signed by you or a co-applicant. Please call us to get current rate quotes.

We will send a confirmation letter within five business days of receiving your lock-in request to let you know that we received and accept your request. This letter is not a commitment to make the loan or to close your loan by a specific date.

If you have any questions about locking in an interest rate, please contact us.

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