Should I Lock My Mortgage Rate Today?

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When applying for a mortgage, you have some control over the mortgage rate, as lenders will consider your credit score, income, and assets to determine your risk as a borrower.

Read on to learn how a mortgage rate lock works and the potential benefits and consequences of using this approach.

What Is A Mortgage Rate Lock?

A mortgage rate lock is an agreement between a borrower and lender to secure an interest rate on a mortgage for a set period of time.

How A Mortgage Rate Lock Works

How the rate lock works in practice will vary among  lenders, loan terms, different types of mortgages, and geographic locations.

If you don’t lock in a rate, it can change at any time. An uptick in interest rates would translate to a higher monthly mortgage payment.

Consequences Of Not Locking In Your Mortgage Rate

What To Do If Interest Rates Fall After Your Rate Lock

Float-down policies vary by lender but generally cost more than a conventional rate  lock for the added flexibility  and assurance.

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