Rate lock in fees on investment triplex property

[Ivonne Hunter]

Hello to all, I’m recently got into escrow on my very first investment property and when going through all of the fees to close I came across a “lock in rate” fee which is to lock in the 6.125% interest rate at a whopping 4% of the loan amount ($540k) which is an additional $12k. Has anyone ever heard of this.

[Kevin Luttrell]

@Ivonne Hunter yes it’s paying the mortgage company. I haven’t seen a lock in fee in years, and the last one I saw was around $800. Could be that they’re just disclosing their buydown points to you as a lock in fee but I don’t know why they’d do that. Weird.

Shop around.