Rate Lock Policy

Rate Lock Policy

Meridian Home Mortgage’s Rate Lock Policy is a major reason why we are able to offer such low mortgage interest rates. A loan is eligible for a rate lock once the appraisal is complete. It’s important to understand why:

Our lending partners reward us with lower interest rates than our competitors partly because we are able to deliver the loans that we lock. The final home value can affect the loan approval and the rate. Waiting for the appraisal before locking ensures that we can continue to deliver a very high percentage of loans that we lock. The result is lower rates for all of our clients.

Once your appraisal is reviewed, you can either lock or float your rate:

Lock:

  • Your mortgage interest rate will be locked – your loan must close and fund during the lock period
  • You are protected against negative market changes throughout the loan process
  • In most cases, your rate will be locked for 30 or 45 days depending on market conditions. 60 day locks are also available upon request

Float:

  • Your mortgage interest rate will not be locked – no deadline or time frame for closing is mandated
  • Floating will leave your loan rate subject to market fluctuation
  • If rates drop and you decide to lock, you will benefit. If the rates increase, you will get the higher rate
  • Meridian Home Mortgage does not offer rate predictions or rate forecasting services

Rate Lock Extensions

  • Lock extensions are available on all loans
  • If the rate lock expires, you may be charged a rate lock extension fee. Generally, this fee is added to your loan and varies in amount
  • The cost of an extension depends on several factors including the length of the extension and current market conditions

Rate Lock Questions