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Lock Your Rate Lock Your Future

So what do you do when interest rates are rising?


One of the great things is for up to 60 days (but varies ) you can actually “LOCK” your rate meaning you can (for a fee) guarantee yourself an interest rate that is favorable to you during times of rising rates. Now this is important in a few ways and can actually save you more in the long run if you as a buyer see rates rising for the near term.


Locking in your rate is a great tool to provide yourself a financial sense of relief knowing that you are for the length of time shielded from rising interest rates, as my own experience goes I had a wonderful client who when starting out with a rate of 4.75% and to watch it escalate to over 6% nearly cost us the deal due to an increase to the Debt to Income thus proving rate lock matters in more ways than one! Now remember nothing causes volatility more than uncertainty as this occurs in both our personal and financial life.

You can ask yourself "will what if interest rates fall?" it's possible but normally not the case, not to say it can't happen but usually it's a "no" but if it does happen you can allow the lock to expire and in some cases you can have a variable lock and this will allow the lock to fall but not rise beyond the locked rate so it acts as a ceiling but no floor.


I can say this, having a mortgage payment that you know will be the same till the life of the mortgage is great for all of the endless questions that goes in and out of your mind as a buyer and is only less worry that is worth its weight in gold and one less stress that will pay for itself!


Real Estate by Marilyn








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