Should I Lock My Mortgage Rate Today?

RADICALFIRE.COM

If you’re in the midst of the home-buying process and want to secure your rate, you may be able to do so with a mortgage rate lock.

A small change in rates can lead to thousands in savings or additional costs over the life of  a mortgage. 

Locking in your mortgage rate safeguards you from market fluctuations while the lender underwrites and processes  your loan.

What Is A Mortgage  Rate Lock?

So when can you lock in a mortgage rate?

Depending on the lender, you may have the option to lock in the rate any time between pre-approval and when underwriting begins.

Before pre-approval and locking in, it’s recommended to get multiple offers when shopping for a mortgage to find a  competitive rate.

It’s worth noting that borrowers aren’t committed to the lender until closing, so reapplying elsewhere is an option if rates change considerably.

The Takeaway

It’s important to choose a lock period that gives the lender ample time to process the loan to avoid extra fees or a potentially  higher rate.

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