Lock in an interest rate
Mortgage interest rates can change daily. By locking in a rate, you're guaranteed to get that rate for a certain period of time.
Why should I lock in an interest rate?
Interest rates are unpredictable, so if you've found a loan that meets your budget, consider locking in the rate. Locking a rate can protect you from swings in the market. You'll likely pay a fee to lock a rate. The fee may vary from lender to lender.
When can I lock an interest rate? How long does it last?
You can lock an interest rate up to 5 days before closing. Rate locks usually range from 30 to 90 days. Ask your Home Lending Advisor when they expect you'll close and plan accordingly.
What happens if a rate lock expires before closing?
If it looks like your closing will be delayed, ask your lender about a rate lock extension as soon as you can. If your lock expires, you'll need to pay a relock fee and your new rate will be either the current market rate or your original lock rate, whichever is higher.
Do the pros of a rate lock outweigh the cons?
As we mentioned, interest rates are unpredictable. Sure, they can go down after you lock, but they can also go up. Locking a rate protects you from a rate increase which could impact your monthly payments and overall budget. Locking at a lower rate could also save you money over the life of your loan.
