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Can lender require me to pay an automatic rate lock extension fee after my rate expired?

by helen249 from Olympia, Washington. Dec 9th 2015 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,571 contributions

Sure... You can also walk away. Each company handles this differently. For us, our policy is at the time of locking, there should have always been enough time to get the loan done. So why didn't it close on time? If it was our fault, we cover the lock extension. If it was your fault (or NOT the fault of the lender), then you cover it.

Dec 9th 2015
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Jordan Swerland (jordan.swerland@apmortgage.com)
#101 ranked lender in Washington - 10 contributions

Hi Helen,Just as Joe mentioned. They can charge for the extension. I assume you already paid for an appraisal? If so, it is a decision on whether it is worth it to you to switch to another lender and pay for another appraisal... sometimes it is worth it. Happy to look into it for you.

Dec 9th 2015
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Derick Condron (rightstartoregon)
#33 ranked lender in Oregon - 597 contributions

If the lock has expired then yes they can charge you to extend. Or the rate could change as typically there is a re-lock fee associated with that. Each lender will handle extensions differently in terms of passing the cost on to the borrower.

Dec 9th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,055 contributions

As others have said... yes, you can be charged, but as Joe said.. most lenders will pay for the lock extension if it was their fault the lock was blown.. but if it's the fault of the borrower, the seller or something to do with the title company or the property it self, then the lender will not pay for it.. if it was the fault of the sellers, then it's possible you can get them to pay for your extension.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Dec 9th 2015
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 644 contributions

Yes, they can sometimes the broker will work with you on that. All the answers pretty much covers everything

Dec 10th 2015
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Jesse Stroup (jessestroup)
#4 ranked lender in Idaho - 591 contributions

Each mortgage company has there own system, so they may do this.

Dec 9th 2015
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Jesse Stroup (jessestroup)
#4 ranked lender in Idaho - 591 contributions

You can always look to other mortgage lenders.

Dec 10th 2015
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