 What if rates change before I close on my home loan? |
 At Third Federal, you automatically receive a 60-day commitment that locks in your interest rate from the date that you apply. If the rate goes up before closing, you will retain the rate you obtained at the time of application. If the interest rate goes down, you can revise to the new lower rate by paying a nonrefundable revision fee at least ten days before closing.
You can also select a 240-day commitment that locks in your interest rate for up to eight months. To obtain this longer commitment, you must deposit with Third Federal a fee equal to 1% of the loan amount within five days after loan approval. This fee will be applied toward your down payment and closing costs, provided that you do not reviseor cancel your loan (in which case the fee will not be refunded to you). If interest rates should rise within that eight-month period, you will retain the interest rate in effect at the time you applied for your loan.
If you need even more time, we offer a 360-day commitment for our 1-year, 3-year and 5-year Adjustable Rate Mortgage (ARM) loans. It locks the interest rate for up to 360-days from the date you submit your loan application. After 300 days if you'd like to convert to a fixed rate product you can do so for free. All you need to do is let us know that you would like to change your product, your rate will be the then current rate and will be locked for the remaining portion of the 360-day commitment period. This long term commitment requires a fee equal to 1% of the loan amount to be deposited with Third Federal within five days after loan approval. This fee is applied toward your down payment or closing costs provided the loan closes before the commitment expiration. The commitment fee is required before we will convert your product to a fixed rate.
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