Rates are flat today. Europe bails out its first bank, and bonds and stocks are up as a result. Today’s rates with no lender fees are 4.125% on a 30 year fixed, 3.5% on a 15 year fixed, and 3.0% on a 5/1 ARM (click here to get the details).


Happy Columbus Day everyone! That is, unless you live in Hawaii, Alaska, or South Dakota. These three states do not recognize Columbus Day as an official holiday. Today I’ll explain why your rates or costs may change after you lock.

I’ll tell you why a lock isn’t a sure lock in today’s video:

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(Watch it on your mobile phone or email reader here)


Unfortunately, a locked loan can have a rate change during the mortgage loan process. Why does this happen?

Lenders use risk-based pricing on loan scenarios. When your lender locks your loan, it is a snapshot at the time of application with the information you give them. In this scenario your home’s value is often unknown, and an appraisal may affect your rate.

So if your loan is locked at a 60% loan-to-value ratio (LTV) and your appraisal comes in lower than expected, it may take you over 60% LTV. The increase in your LTV could lead to higher rates and costs.

When you are locked in, an appraisal may also improve your loan situation. If you locked at 65% LTV and your appraisal is higher than expected, you should see a reduction in rates and costs.

Make sure you ask your lender about this at the beginning of the loan process. Covering any potential changes in pricing at the time of your lock makes sure everyone is on the same page. Nobody likes unnecessary surprises.

If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.

Let’s change the way people shop for a mortgageā€¦forever!

– Mike

PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

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