How to Resolve 30 Year Residential Loan

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Question:

How do we resolve a conventional 30 year residential loan, originally floating at application, that was closed without being officially "locked," at the rate originally stated on the LE, which did state that the rate was floating? Will the resolution differ if the now current market rate has dropped lower than the original stated rate versus an increase in the rate?

Answer:

I have no idea what you are trying to resolve. If the rate was not locked, then your initial CD will reflect the then current interest rate, whether higher, lower or the same. There is no APR test between an LE and the initial CD. If the rate changes after the initial CD is issued and the APR is then out of tolerance, it triggers a new three business day wait.