As you all probably have already seen, interest rates have gone up in the recent weeks. Im in the process of getting a new property. Im getting it with a conventional loan. However, I got a called today saying that I had to pay a fee to lock that interest rate. I had no other option due to my debt ratio. Now, I dont understand why they say my debt ratio has worsen when nothings has really changed. This is my second property I buy. I didnt have to pay anything to lock my interest rate on that first property. They say that I have to pay nevertheless, now or later. It could be more or it could be less. What are yalls thoughts? any feedback is appreciated.
I would ask what the fee is for. Locking the rate itself shouldn't cost anything, however many lenders will charge the appraisal when the rate is locked. This is usually the only out of pocket cost before closing.
If you are waiting to order the appraisal but wanting to lock, I don't see what the charge would be for. Hopefully this helps!