Should I Lock My Mortgage Rate Today? Should I Lock in My Mortgage Rate? Should I Lock My Rate Today
Should I Lock My Mortgage Rate Today? should i lock in my mortgage rate? should i lock my rate today
Do you want to know "Should I Lock My Mortgage Rate Today?"
You can choose to lock in your mortgage rate from the moment you select a mortgage, up to five days before closing. Locking in early can help you get what you were budgeting for from the start. As long as you close before your rate lock expires, any increase in rates won't affect you.
The ideal time to lock your mortgage rate is when interest rates are at their lowest, but this is hard to predict even for the experts.
It's worth noting that interest rates could decrease during your lock period. Should this happen, you'll most likely have to pay the rate you initially locked in. If your lock period has lapsed before the closing, you may be able to negotiate with your lender for a new rate lock, but it'll depend on the circumstances and the lender. Rate locks typically last from 30 days to 60 days, though they sometimes last 120 days or more. Some lenders do offer a free rate lock for a specified period.
A longer rate lock is more expensive, though. For example, a borrower who chooses a 30-day lock on a fixed-rate 30-year loan might pay a 4 percent rate and zero points, while a 60-day lock might cost 1 point (equal to 1 percent of the loan) or a slightly higher rate with a half-point.
It’s a gamble, of course, because no one knows what interest rates will do. They’re set based on various factors that can change daily, and while they could keep climbing, they could fall too. It might be helpful to look at rates from the past 60 days to get a sense of how they fluctuate. Also, pay attention to when the next Federal Reserve Board meeting is and what changes it’s expected to make to interest rates.
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