Quote:
Originally Posted by Alfisti
Wait, wait. So it's locked in at 2.75 for 30 years?
You guys down there really do have overly confusing taxation and finance rules, it's a fucking dog's breakfast.
|
No, some people are misusing the term "rate lock". A non-variable mortgage is referred to as a "fixed" mortgage vs. an "ARM" (Adjustable Rate Mortgage) or other variable rate loan vehicles.
A "rate lock" is an agreement, between you and a lender, on a rate that is "locked" for a certain period of time before finalizing the loan. Some of them have "float down" clauses which allow the "locked" rate to go down if primary rates drop, but prevent it from going up if rates happen to rise.
Then there are "points" that can be purchased and have already been well described earlier in the thread.
https://www.consumerfinance.gov/ask-...times%20longer.
https://www.consumerfinance.gov/ask-...m-loan-en-100/
https://www.consumerfinance.gov/ask-...y-work-en-136/