The interest rate market is subject to movements without advance notice. Third Federal automatically locks in your rate for 60 days once your purchase or refinance application is submitted. This protects you from the fluctuations in the interest rate market.
A rate lock is an agreement by the borrower and the lender and specifies the number of days for which a loan's interest rate and discount points are guaranteed. Should interest rates rise during that period, Third Federal is obligated to honor the committed rate. Should interest rates fall during that period, the borrower must honor the locked rate or pay a revision fee to receive a different rate or a different loan program.
When you find a home and provide us with your final purchase information and application fee, if applicable, your application will be converted to a full application and locked with the rates and fees in effect at that time.
Lock Period: Your interest rate is locked for 60 days from the date your purchase or refinance application is submitted. This means your loan must close and disburse within 60 days from the day your lock is confirmed by Third Federal.
You can lock your rate for longer than 60 days for purchases only. To do this, we require a long-term commitment deposit. A 360 day loan commitment will be given only upon approval of a completed loan application and will remain in effect for 360 days from the date of application. In order to get this 360 day rate lock, you must provide Third Federal with 1% of the loan amount as a deposit. This amount will be credited toward your down payment or closing costs provided your loan closes within 360 days.
If your loan is not closed by the end of the commitment period, or if your loan is cancelled for any reason prior to closing, your 1% commitment deposit will be forfeited.
After you submit an application and obtain a rate lock online, a confirmation email is sent to the email address you provided during your online application.
Loan Revisions: Your interest rate is locked at the time you submit a full application. If you revise your loan for any reason after speaking with your loan officer, you will be required to pay a revision fee and are subject to prevailing products, rates and fees. When purchasing a home, one revision of the loan amount only will be permitted without charge. All revisions are subject to review and approval by our underwriters. Requests for a revision should be communicated to a loan advisor promptly. The additional processing required to handle your request can result in delayed closings.
If you have secured a 360 Day Loan Commitment and want to revise your loan in order to change the interest rate, loan product, term of loan or extension of the commitment you will incur a Revision Fee, lose the 1% commitment deposit and be subject to the prevailing products, rates and fees.
Lock Changes: If your lock period expires before your loan closes and you would like to lock a rate for another 30 days, you can do so without being required to pay a fee. However, your interest rate will be either the Third Federal rate in effect for your product on the day your request is processed or your original rate, whichever is greater.