Should you lock in the mortgage rate?

Q: Is it smart to lock in the mortgage rate?

A: The interest rate market is constantly fluctuating and often experiences quick, unexpected movements. Locking in a mortgage rate with a lender can offer protection from the time your lock is confirmed to the day it expires.

Lock-ins are logical in a rapidly-rising rate environment or when borrowers anticipate rates climbing during the next 30-60 days, which is usually the amount of time a lock-in remains in effect.

A lock-in given at the time of application is useful because it may take the lender several weeks to prepare a loan application. But these days ,automated loan practices have sliced the time significantly.

Lock-ins aren’t necessarily free. Some lenders require you to pay a lock-in fee to guarantee both the rate and terms.

If your lock-in expires before you close on the loan, most lenders will base the loan rate on current market interest rates and points. 

Previous PostNext Post

Subscribe

Search

Follow

Website Powered by Real Estate Web Solutions

©2017 Real Estate Web Solutions, LLC. All rights reserved. realOMS Login | Switch Mobile Site | Browse Listings