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Interest Rate and Loan Specifications on Housing Purchase Agreement?
Hi there, another question from me!
When we signed our purchase agreement the first page had a place to put in information for who we thought we would get our loan with and how much etc... It also asks for the interest rate and actually says "With an interest rate not to exceed ____" Well, the rate we are getting quoted now and the rate we were quoted back then vary greatly as rates have since gone up. Does it matter that on this contract it says we will have a rate of X amount when the rates have gone up? How can anyone really say what the rate is going to be for sure on a 30 yr fixed loan before they actually have a purchase agreement?
This was on the "Third Party Financing Addendum"
1 Answer
- Beverly SLv 71 decade agoFavorite Answer
This just gives you the option to back out if the rate goes sky high. It says "not to exceed" so if you have not to exceed 7% & rates went to 10% you could back out. You would not be required to though. It's for the buyers protection.
Source(s): 22 years mortgage business.