Here’s the question:

“The mortgage broker I am currently working with says that he can only get a 15 Lock and it can be extended at a cost of $125 every time I extend. I am doing a HUD sales through FHA and my contract states I must close within 45 days. Shouldn’t I be able to choose between 15/30/45 day lock? Should I expect to pay extra money for a longer lock?”

The standard lock on a loan is 30 days, but as you accurately describe a range of mortgage lock terms are always available ranging from 15 days all the way up to 60 days.

The loan officer is obviously lying saying a 15 day lock was the only available. He is telling the truth about a $125 cost increase for every extra 15 days in length for every $100,000 of loan amount.

This is a common “bait-n-switch” tactic…quote the rate and produce the Good Faith Estimate based on a short term lock duration hoping the client won’t notice.

Then at lock time, after the loan application when the borrower is fully committed, quote a rate at a more realistic lock duration with a higher cost or rate…or both.

My advice to find an ethical mortgage provider is to check out our Free Tools.

Great question…thanks!

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