Q & A: Lock-Ins

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  1. Do you advise a lock-in on a home loan?
  2. What is the advantage of locking in an interest rate?
  3. What is the value of locking in a mortgage rate?
  4. Where do I get information on locking-in a mortgage loan?

Do you advise a lock-in on a home loan?

There are a few factors to consider when locking in a mortgage rate. Locking in guarantees that rate for your loan at closing, even if the rates go up. Likewise, if the rates go down, you are still locked in at your guaranteed rate. For this reason, everyone wants to lock-in their mortgage rate when rates are at their lowest. Unfortunately, there is no way to know when that will be. But, many prefer to take the chance of locking in and rates dropping, than take the chance of not locking in and rates rising. Speak to your lender regarding their lock-in process, if they charge any lock-in fees, and what their time limit is for their guarantee (most guarantees expire after 30-60 days).

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What is the advantage of locking in an interest rate?

Locking in your mortgage rate guarantees that rate for your loan at closing, even if the rates go up. Likewise, if the rates go down, you are still locked in at your guaranteed rate. For this reason, everyone wants to lock-in their mortgage rate when rates are at their lowest. Unfortunately, there is no way to know when that will be. But, many prefer to take the chance of locking in and rates dropping, than take the chance of not locking in and rates rising. Speak to your lender regarding their lock-in process, if they charge any lock-in fees, and what their time limit is for their guarantee (most guarantees expire after 30-60 days).

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What is the value of locking in a mortgage rate?

Locking in your mortgage rate guarantees you will have that rate for your loan at closing, even if the rates go up. Likewise, if the rates go down, you are still locked in at your guaranteed rate. For this reason, everyone wants to lock-in their mortgage rate when rates are at their lowest. Unfortunately, there is no way to know when that will be. But, many prefer to take the chance of locking in and rates dropping, than take the chance of not locking in and rates rising. Speak to your lender regarding their lock-in process, if they charge any lock-in fees, and what their time limit is for their guarantee (most guarantees expire after 30-60 days).

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Where do I get information on locking-in a mortgage loan?

Locking in your mortgage rate guarantees that rate for your loan at closing, even if the rates go up. Likewise, if the rates go down, you are still locked in at your guaranteed rate. For this reason, everyone wants to lock-in their mortgage rate when rates are at their lowest. Unfortunately, there is no way to know when that will be. But, many prefer to take the chance of locking in and rates dropping, than take the chance of not locking in and rates rising. Speak to your lender regarding their lock-in process, if they charge any lock-in fees, and what their time limit is for their guarantee (most guarantees expire after 30-60 days).

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