Lock In Your Loan
Currently, interest rates are on the rise for mortgages in the United States. What does this mean for you as a potential buyer? It can mean what you qualified for yesterday, may not be what you qualify for next week. This is where a lock-in comes into play.
A lock-in holds an interest rate and points for a specified period of time, usually 30-60 days. Depending on the lender, you can lock-in at the time of application, during loan processing, at the time of loan approval, or later.
A lock-in at application is useful when interest rates are on the rise, protecting against rate increases. If interest rates are falling, it may be best to wait until after application approval to lock in.
Lock-ins aren’t always free. Some lenders charge up-front fees, which may or may not be refunded upon application withdrawal or denial. Other lenders charge the fee at settlement. The fee may be a flat fee, a percentage of the mortgage amount, or a fraction of a point added to the lock-in rate.
If you are unsure if your interest rate was locked in or you need a great, local lender who would be happy to assist you and protect your future investment, contact us today and we will guide you into the right hands.
If you are looking for homes for sale in MA and CT, we are here to help!