Locking your mortgage rate is one of the most important things you do when obtaining a home loan. Lock too soon and your rate can expire and you may have to go through the whole process again and in the worse case, rising interest rates, you may not qualify and you could lose the deal. Thus being out all the time and expenses in trying to get a loan. Lock too early when rates are falling and you may miss out on the best interest rate.
This is why using a great professional agent and mortgage for bought your purchase and getting your loan is so important. Let me use my 30 years of experience to help guide you through this process. If I can help you find the perfect Napa Valley property, please email me
Some considerations for locking your home loan
- The rate lock might be the most complicated issue mortgage borrowers need to understand.
- A rate lock is a guarantee that the lender will offer the borrower a specific combination of interest rate and points. A point is a fee or rebate equal to 1 percent of the loan amount.
- Also essential to a rate lock is a time period, typically 10, 15, 30, 45 or 60 days.
- A rate lock protects the borrower from rate fluctuations for the duration of the lock period. If market rates rise after the rate is locked, the borrower will still get the lower rate, to the lender’s detriment.
But there’s a downside: If rates fall after the rate is locked, the borrower might not be able to take advantage of that opportunity