They will charge no points and even refund my Credit Report and Appraisal fees at close of escrow. The problem is that it will be at least 45 days before I can close escrow and they will only lock it in for 30 days. They charge an extra fee to lock the rate in for longer. Because they cannot lock that rate in for you, now. This is a typical bait and switch scam.
Lenders call it dialing for dollars.
As most consumers view a mortgage loan, especially the thirty year fixed rate mortgage, as something of a commodity, the consumer feels they should go with the lowest price. The lender knows that this kind of shopper will go with the person giving the lowest quote that the consumer will believe. The lender has two choices, tell the truth and have the consumer go on their way, or lie and lure in the customer. This is the bait. The consumer pays upfront fees such as Application, Appraisal and Credit report fees and applies with the lender.