What if My Lender Quoted Me One Rate at Application but Raised it at Closing?

This is a real question from the CFPB website when a consumer clicks on “lenders”. Here is their answer, followed by my two cents:

“If you have a rate lock agreement, then your interest rate cannot change. You will probably have to pay a fee to lock your rate and the rate lock agreement is usually separate from the Good Faith Estimate (GFE). Unless you have it in writing, your rate probably is not locked.

You may be able to tell can find out if your rate is locked on the GFE. If you look in the “Important Dates” section of the GFE, you will find four numbered pieces of information. If item number four reads “You must lock the interest rate at least ‘N/A’ days before settlement,” then your rate is locked.

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