The Federal Reserve Board and the Federal Home Loan Bank Board have prepared this information on mortgage lock-ins in response to a request from the House Committee on Banking, Finance and Urban Affairs and in consultation with many other agencies and trade and consumer groups. It is designed to help consumers understand an important aspect of home financing.
We believe a fully informed consumer is in the best position to make a sound financial choice. This page will provide useful basic information about obtaining the terms of credit you really want. It cannot provide all the answers you will need, but we believe it is a good starting point.
When you're looking for a mortgage, you're likely to shop among lenders for the most favorable interest rate, and the lowest points and other up-front charges. When you find the most favorable terms and the lender that you want, you'll apply to that lender. But when you get to settlement, will you actually receive the terms you applied or bargained for? Or will you find that the rate has changed - and that your costs have gone up? Lock-ins on rates and points might offer you a way to ensure that what you shop for is what you get. This page explains what these arrangements mean.
