What is a rate lock?
A rate lock is a lender’s guarantee that the rate you have selected is protected against rate fluctuations in the marketplace for a specified period of time. Xcapital Inc locks in your interest rate but also your closing fees. This lock period will have an expiration date based on the lock term that you select.
When can I lock?
After obtaining approval by speaking with one of our Loan Consultants you can immediately lock in your interest rate based on your close of escrow date.
Will there be a charge or additional fees to lock in my interest rate?
Xcapital Inc will require a credit card number for a $500 lock in fee to lock in your interest rate. The lock-in fee will be charge only if you back out of the loan. The lock-in fee is NONREFUNDABLE unless, based on income qualifying or credit, we do not approve your loan for closing. If your loan fails to close for any other reason (including your decision to withdraw your application), then the lock-in fee will not be refunded to you. There is no application or appraisal fee.
What happens if the interest rate drops after I have locked in my rate?
Once you have locked in your interest rate with Xcapital Inc, your rate, points, and closing fees are not negotiable, even if market conditions improve. A rate lock is a commitment by the lender and borrower to close the loan at the interest rate agreed upon and locked in, during the specified lock period. Please see below for the policy regarding when the closing date exceeds the rate lock expiration date.
What happens if my rate lock does not meet the expiration date?
If your rate lock expires prior to your close date, you will have the option of re-locking your interest rate for the same lock period. However, the rate can only be re-locked at the original interest rate or our current market rate, whichever is higher.