Interest Rate Lock Policy

Fixed Rate Mortgages

Interest rates are floating at the time of application which means they are subject to change daily as per market conditions.  You may choose to lock in your interest rate (one time option) at any time during the loan process but no later than 5 business days prior to your scheduled closing date.   If you do not request to lock in your interest rate it will automatically be locked in 5 business days prior to your scheduled closing date.

To lock in your interest rate please complete the Rate-Lock Agreement Form and return it to the Mortgage Originations department by email or fax during the hours of 11am-5pm Monday-Friday eastern standard time (EST)--Lock Window. You will receive the published interest rate during the lock window of 11am-5pm on the day the completed rate-lock agreement is submitted to the Credit Union. Rate lock agreements received outside the Lock Window are considered invalid and you will receive the published rate the following business day.   

There is no cost to lock in your loan.  The term of the rate-lock agreement is for 45 days referred to as the Rate-Lock Period.  A 60 day Rate-Lock period is available for a non-refundable cost of 0.25% of the loan amount at time of rate lock request. If the rate-lock period expires and your loan has not closed your interest rate will float and can never be less than the previously locked interest rate.  A Rate Lock Extension may be purchased for a non-refundable 0.125% (of the loan amount) for every 7 calendar days, not to exceed 28 calendar days. 

Buy-Down Option:  After the initial rate-lock request you do have the option to purchase a reduced rate if our daily published interest rates decrease.  The cost of the buy-down option is a non refundable fee of 0.375% (of your loan amount) for every 0.125% reduction in interest rate. 

Requests for rate lock extension and/or buy-down must be made in writing prior to the expiration of the original Rate-Lock period. 

If you choose to change your loan product after you have locked in your rate (i.e. change from a 30 year fixed to a 20 year fixed) you will receive the greater of the daily published rate, for the new loan product, on either the original lock request date or the product change request date.  

Payment for a rate lock buy-down or extension is accepted by one of the following methods:  1) Allow Bethpage Federal Credit Union to transfer the fee from your Bethpage checking, money market or savings account or 2) Credit Card Payment. 
 
*Note:  Bethpage Federal Credit Union will not accept a rate lock request unless the submitted mortgage application contains a property address AND a fully executed contract of sale for all purchase transactions. 

Adjustable Rate Mortgages

Adjustable Rate Mortgages are locked automatically at time of application for free for 60 days. This means that the interest rate is locked on Adjustable Rate Mortgages with the rate in effect on the date of the mortgage application.  As an added benefit, on Adjustable Rate Mortgages, we offer a free float down, which means if the rate in effect at the close of business, five business days prior to your closing is lower than the locked in rate, you will automatically receive the lower rate. No rate lock form or fee is needed for a standard amortizing Adjustable Rate Mortgage.  If you do not close within the Rate Lock period your rate will be floating and subject to change daily as per market conditions.

Click Here to access our Lock-In Agreement.