----- quick mortgage step summary
-----
watch the rates
rates change daily
You need to watch them closely. If your desired rate begins to climb, ask your lender about locking-in the rate.
Lock-in's vary by lender. Generally, lock-in's allow you to keep the rate you lock-in for 30-60 days while you finalize your mortgage application. At the end of the lock-in period, the rates adjust to current prevailing rates.
Lock-in's have advantages and disadvantages:
- Advantages
allows you to protect the rate at the level you need to make a financing decision. And if rates go up, your lock-in rate is the guaranteed rate when you close on your loan.
- Disadvantages
lock-in's may cost you (varies by lender). Plus, if rates drop, you are stuck with the lock-in rate when you finalize your application. Sometimes lenders will allow you to take the lower rate with a penalty. You need to discuss lock-in terms and costs with your lender.
 |
More Rate Information
|
----- end of mortgage step summary -----
