Since our mortgage rates change on a daily basis, we offer the option of locking-in a current Tower Federal Credit Union rate to protect you against an increase during the loan process.  This is called the Guaranteed Interest Rate option.  Once your loan rate is locked, you will receive this rate and points you requested, no matter which way rates move.  This means that the rate you lock-in will be the same rate when your loan closes.

You can lock-in an interest rate and points if you:

• For purchase loans, supply us with a signed purchase contract on the property you want to buy.
• For purchase and refinance loans, submit a completed Tower Federal Credit Union mortgage loan application (an on-line application or a paper application) and required paperwork.
• Pay all fees required at application.

You also have the choice of the float option.  You have until 10 business days before closing to lock-in your rate.  If you have not locked-in your rate 10 business days before closing, the interest rate on your loan will be the rate offered by Tower Federal Credit Union 10 business days before closing.

For the Guaranteed Interest Rate you will have an expiration date of 60 days from the date you locked.  If the loan does not close on or before the expiration date, if you withdraw your application, or if you change any terms of your loan request, the lock-in agreement is null and void and your loan terms must be re-locked.  When you re-lock, under any circumstances, within 60 days of the lock-in expiration date noted on your lock-in letter, your interest rate and discount points will be the HIGHER of (1) the rate and points offered by TFCU on the new lock-date based upon the loan product you have applied for, or (2) the rate and points you originally locked in.  A premium for the re-lock-in extension/re-lock may be added.