Why Should I Lock My Loan?
These days, everyone is looking for a deal; especially when it comes to their mortgage payments. And with near-record low mortgage rates, it’s hard not to get one, but what’s the big deal about locking your loan?
Well, although rates are currently extremely low, they are still volatile and can change every day or even every hour. By locking your interest rate, you are securing yourself for the length of your lock, so that even if interest rates go up by the time you close, you will receive the lower rate you locked. Locking your rate can help protect you later down the road, saving you money and anxiety.
What if you don’t lock? You’re taking a risk. You may be waiting to see if you can get a lower rate, but markets can change quickly and are hard to predict. Your loan officer can help you decide your best options, so consult them when deciding when to lock.