Before you make that decision to purchase that new home there is something you should consider, “Should I lock in a mortgage interest rate ?”
There it is that perfect home that you have been waiting for. You and your family have gone through it and it is just what you have been looking for. You are ready to make the deal to purchase it but you are concerned about whether the current interest rate will apply by the time you are ready to sign the contract. You wonder, “Should I lock in a mortgage interest rate?”
Should I lock in a mortgage interest rate?”
Locking in a mortgage interest rate is probably a good idea if that interest rate is quite low. However, if current trends indicate that they may go even lower you may want to take that into consideration before making that choice.
What happens when I lock in a mortgage
According to A Consumers Guide to Mortgage Lock-Ins, on the federalreserve.gov website, you can ask your lender to lock in a specific rate of interest while your loan application is being processed. You can also ask that the points be locked in as well. By doing this you can protect yourself in the event that interest rates increase during this period of time.
How long can I expect a lock-in to remain valid?
The usual length of time that a lock-in on interest rates remains valid is 30-60 days after the agreement. With this information you should be better prepared to answer the question that was asked above, “Should I lock in a mortgage interest rate?” That answer will depend on a variety of factors about current interest rates. If you are confident that interest rates will not go any lower then it may be a good idea to lock them in