| Aside from taking out an Adjustable Rate Mortgage | | | | front. |
| that comes with an introductory teaser rate, very few | | | | Should You Lock in Your Mortgage Rate? |
| lenders guarantee anything with their interest rate | | | | The decision to lock in your mortgage rate depends if |
| quotes. Instead, your interest rate is set by the lender | | | | your lender will still qualify you for the amount you're |
| at the time you close, unless you lock the rate before | | | | borrowing if mortgage interest rates go up. If the |
| that day. If you decide to lock in your interest rate it | | | | answer is no, you should probably lock as soon as |
| helps to know when, how, and if you should lock, along | | | | possible. If you don't lock you could find yourself running |
| with whether or not you should pay to lock in your | | | | around at the last minute trying to get qualified for the |
| interest rate. | | | | amount you need. On the other hand, if you have |
| When Can You Lock Your Mortgage Rate? | | | | plenty of cash on hand you could take the risk and |
| Typically you can lock in your interest rate on the date | | | | save yourself some money at closing. |
| of your loan approval, possibly even as early as your | | | | Most people who dislike financial risk prefer to lock in |
| application date. You have the option of waiting a day | | | | their mortgage rates even if they have nothing to lose |
| or two before your closing date. | | | | in the short-term before closing. If this describes you, |
| How Long Should You Lock? | | | | lock in your mortgage interest rate at the first |
| Mortgage rate lock periods last from 10 to 90 days; it | | | | opportunity and you'll sleep better at night. The |
| is possible to secure a longer lock if you are building | | | | downside of locking in your mortgage rate is that if |
| your home. | | | | rates go down before closing, you will have missed out |
| How Much Will You Pay For the Rate Lock? | | | | on the opportunity for a lower mortgage interest rate. |
| The longer you choose to lock in your mortgage rate, | | | | You can learn more about your mortgage options, |
| the more it will cost you. Some lenders try and charge | | | | including expensive mistakes you need to avoid with a |
| this fee up front; however, you should never pay it up | | | | free mortgage tutorial. |