Revised LE & Rate Lock: What to Do and When [Mortgage Guide Ep. 5]

📝 Revised LE & Rate Lock: 3-Line Summary

The Revised LE & Rate Lock stage is when you receive an updated Loan Estimate reflecting the actual locked interest rate.
When the rate is locked or any loan terms change, the lender must issue a Revised LE so you can confirm the updated conditions.
By checking just a few items (rate, points, credit, closing costs, and lock expiration), you can secure a more favorable rate.

The Revised LE & Rate Lock stage requires one of the most important decisions you’ll make: when to lock your rate. In this article, we break down the best timing for a rate lock and the key items you must review in the Revised Loan Estimate (Revised LE).

1. Initial LE vs. Revised LE

If you already received the Initial LE in Episode 2, why is the lender sending you a Revised LE? Simply put: because the rate lock changes the pricing basis.

✓ Initial LE (1st): A preliminary estimate based on market rates at the time of application.
✓ Revised LE (2nd): A precise estimate based on the actual rate at the time you lock. This version also reflects updated third-party items such as taxes and insurance.

💡 Under U.S. TRID rules, when certain Changes of Circumstance occur, the lender is required to issue a new Revised Loan Estimate.

Revised LE Review

✅ Common Situations That Trigger a Revised Loan Estimate

List	Details
Rate Lock is executed	When the rate, points, and credit structure are finalized, a Revised LE must be issued (because the Initial LE is only an estimate).
Loan structure changes	• Loan amount changes (LTV shift) • Down payment percentage is revised • Loan product changes (e.g., 30-yr fixed → 7/1 ARM)
Third-party results affect costs	• Appraisal results change MI requirements • HOA or title fees finalize at amounts different from the initial estimate
Closing schedule changes significantly	• Closing date delayed → Lock extension fee added • Schedule shift causes adjustments in certain costs

2. When to Lock the Rate?

It’s one of the hardest decisions, but using the following three criteria makes it more convenient:

✅ Three Key Criteria for Deciding When to Lock

List	상세
Market Trend	Check whether mortgage rates are currently trending up or down (Check market news and expert commentary.)
Time Left Before Closing	If you have more than 30 days until closing, you have flexibility; with fewer than 15 days, locking early is generally safer.
Risk Tolerance	If chasing a 0.1% drop keeps you up at night, it may be better to lock at a comfortable rate and prepare for closing.
Likelihood of Loan Changes	Best to lock after appraisal and underwriting; they reduce the chance of major loan-structure changes.

Find the Best Lock-In Timing

3. What to Check in the Revised LE

If you receive the Revised LE, especially after locking your rate, make sure to verify the following items.

3-1. Interest Rate & Lock Information

What interest rate is officially locked
Whether the loan is Fixed or ARM, and if ARM, the initial fixed period
The Rate Lock period and expiration date listed on the document

3-2. Points & Lender Credits

Check whether you:

Paid points to buy down the rate or
Chose a slightly higher rate in exchange for lender credits to offset closing costs.

This trade-off becomes clearly visible in the Revised LE, so it’s essential to choose based on your financial situation and how long you plan to hold the property.

💡 In simple terms:

Paying points: Pay more now, pay less interest every month

Receiving credits: Save money now, pay slightly more interest every month

3-3. Closing Costs & Cash to Close

Review:

Total closing costs (lender fees, title/escrow fees, prepaid taxes & insurance)
Cash to Close amount

If new fees appear or certain costs increase meaningfully compared to the Initial LE, ask what change of circumstance caused such adjustment.

💡 Loaning.ai doesn’t rely on guesswork.
We analyze current market trends and your remaining timeline to advise whether it’s a good moment to lock your rate. With Loaning.ai, thoroughly audit your Revised LE before moving you to the CD stage.

📝 Quick Checklist

Checklist	Details
Read through the Revised LE from start to finish	Compare the interest rate, points/credits, closing costs, and cash to close with your Initial LE.
Check the lock period and expiration date	Make sure there’s enough buffer time between your closing date and your rate-lock expiration.
Ask about any changes you don’t understand	If there are new fee items compared to the Initial LE, ask what they are and why they were added.
Confirm that the structure fits your situation	Review whether your choice (points/credits) aligns with your current funds and future plans.

👉 Upload Estimate for Rate Review

Revised LE & Rate Lock: What to Do and When [Mortgage Guide Ep. 5]

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