1. A mortgage rate lock is simply OU Credit Union promise to hold a certain interest rate for you for a specified period of time before you close on a loan. Because interest rates have the capability of fluctuating on a daily basis, you will need to consider the potential interest expense you may pay if a rate increases prior to locking your rate, or if you elect to have a floating interest rate (not locked).

For a new home purchase, you have the option to lock your interest rate when we receive the purchase agreement signed by all parties. For a mortgage refinance, you have the option to lock your interest rate after your complete application is received.

Once you close on your mortgage, your rate stays the same with a fixed rate loan, or if you have an adjustable-rate loan, the rate will change on the scheduled defined in your loan agreement.

2. There is no fee to lock in your interest rate. If the rate goes down during your mortgage process and you want to take advantage of the lower interest rate, you may re-lock the rate up to two times. The re-lock fee is only 0.1% of the loan amount, no less than $250, no more than $1,000.

For example:

• A $400,000 loan would have a $400 re-lock fee

The option to lock or re-lock your interest rate is available up until 10 days before your mortgage closing.