With so much unpredictability in today’s mortgage market, it’s nice to know you can have some certainty.
Increasing interest rates, rising home prices, and low inventory are factors beyond a homebuyer’s control.
That is why we highly recommend our clients take control and lock in their rate.
In our Steps to Homeownership guide, learn the strategies and tactics of successfully navigating today’s real estate market. In our guide, you’ll learn the importance of each step, including what you need to know to lock in a competitive rate.
Locking in your rate can be accomplished as soon as the offer on your home is accepted. Locking in your rate helps give you peace of mind and certainty on your mortgage.
You’ll know how much you’ll pay, and it’ll stay locked in as you enter and close escrow on your home.
Why is it important to lock in your rate? If your interest rate were to go up, then you may end up spending more. And in today’s fast-moving world, rates can change at a moment’s notice. Locking in your rate gives you more control of your investment in terms of market fluctuations.
When you lock in your rate, you’re guaranteed to keep that rate. Even if rates climb during escrow, you know your rate will remain unchanged. It’s possible that when you decide to lock in your rate for a longer period of time, you’ll be paying a little extra. For instance, a 60-day lock could cost 1 point, which is equal to 1 percent of the loan amount. Depending on how long you decide to live in your home, paying 1 point for a lower rate could equate to long-term savings.
In an uncertain and active market, locking in a rate can pay off. Protect your home-buying power today by asking us about how to lock in your rate, especially if you want to avoid entering the market unprepared and at the mercy of an increasing mortgage rate.