12 November . 2019
When Should I Lock in My Interest Rate?
Buying a new home requires many decisions, both big and small. One (hopefully) small item with a big impact is mortgage interest rates—what you’ll be paying to borrow money for a home loan. One way to remove uncertainty, and gain peace of mind, is to lock in your interest rate. According to a recent article by NerdWallet, “A mortgage rate lock is an offer by a lender to guarantee the interest rate of your loan for a specified period of time, and you may have to pay a fee for it. The lock period usually extends from initial loan approval, through processing and underwriting, to loan closing. However, it can be an extended period for construction loans.”
With daily fluctuations in the market, it's hard to know if rates will go up or down before getting to the escrow phase. A few percentage points in either direction can save or cost thousands over the lifetime of the loan. Veteran mortgage financier, Mark Greene, shares how to find the best time to lock your rate in this Forbes article.