Locking your rate can be one of the most important and frightening part of the loan process.  When to lock, do I pay points, am I stuck with that rate if rates go down, what if my lock expires are all questions many borrowers ask. 

First, most investors offer a float down policy that enables the borrower to lower their lock rate if rates should fall .25% or more.  The norm is that they will lower the rate by .125% at a cost of about .125 pts.  Check with your loan officer for details on your loan as some programs can be different.

Most locks are for a 30 day period. This is fine for most purchases but if you are refinancing you have to add 3 business days for the mandated 3-day right of rescission.  Longer term locks are available with almost all programs. 

Lock extensions are used when a rate lock is about to expire.  Costs for lock extensions vary depending on the investor and how long your lock needs to be extended. Borrowers are responsible for paying for the extension unless Clarion is responsible for the delay. 

Choosing when to lock is the $64,000 question?  No one has a crystal ball to predict where mortgages will go tomorrow, next week or next month.  Just be aware that since Clarion is affiliated with over 200 investors, issues of lower rates rarely becomes an issue.