Why I Recommend Locking Your Mortgage Rate
Here’s how buyers can protect themselves from higher mortgage rates.
Unless you’ve been living under a rock, you know that interest rates are fluctuating almost daily. If you’re under contract to purchase a home, it’s stressful watching your monthly payment go up and down as rates change. What if they rise too high and you can no longer afford the property? Fortunately, there’s an easy way to deal with this problem: locking in your mortgage rate.
Once you get under contract and talk with a lender, you can lock in your rate. I recommend doing it as soon as you can since they are projected to trend up in the near future.
"Locking your rate in our current climate will protect you from unpleasant surprises."
However, what happens if rates fall after locking in your rate? Unfortunately, you normally can’t change to the lower rate without a float-down option. If you choose this as an alternative, your rate will be locked from going up, but it can still fall. Not all lenders offer this option, and it doesn’t make sense for every buyer. Talk to your lender to see if a float-down option could work for you.
Locking your rate in our current climate will protect you from unpleasant surprises. If you have questions about interest rates, buying a home, or anything else, please call or email me. I am always willing to help