Checking the final interest rate against a documented rate lock

Verifying the Rate Lock

A rate lock limits the lender's ability to change your interest rate. Check the Closing Disclosure to ensure the rate matches the specific percentage guaranteed in your written lock agreement.

Planning Example: If your agreement states 6.5% but the disclosure shows 6.75%, request that the lender verify your lock expiration date and provide documentation explaining the discrepancy.

Assessing Upfront Points

Points are upfront fees paid to secure a lower rate. If you paid for these, the Closing Disclosure should explicitly list them under the 'Origination Charges' section.

Planning Example: Create a comparison table: 'Expected Rate (6.5%)' vs. 'Actual Rate (6.5%)'. If the 'Points' fee is missing, clarify if the rate was achieved without them or if there was a calculation error.

Adjustable Rate Risks

Verify that your loan is a fixed-rate product if that is what you requested. If your disclosure indicates an adjustable rate, the document must state this clearly in the 'Loan Terms' section.

Planning Example: Check the column for 'Adjustable Interest Rate'—it should be marked 'NO' if you are securing a traditional fixed-rate mortgage.

Clarifying Rate Changes

If your rate has changed without a clear reason, ask your loan officer if it was due to a lock expiration or a change in your loan program. If you are unsatisfied, consult a real estate professional regarding your rights under the loan agreement.