Keep your Interest Rate on Lock with Rate Lock Options

With mortgage rates climbing, you may be wondering if it is the right time to pull the trigger on purchasing or building a new home. 

Rates for a 30-year fixed mortgage have reached an average of 7% across the U.S. The good news is, there are options available for our buyers to lock in their rate so that if interest rates continue to rise, theirs will not. 

A rate lock guarantees your rate for a set amount of time – which means you are guaranteed not to pay more than the rate you lock in at but can take advantage of a lower rate if one becomes avialble during that period of time. Many lenders are currently offering both short-term and long-term rate locks and, on occasion, even up to 1-year. 

If you get a good rate from your lender, check to see if they offer a rate lock optionand if they do, ask if they can lock in your rate! With rates constantly in flux, you won’t have to be unsure about what rate you may end up with down the line. By locking in your rate, you can be certain you will not be blindsided by climbing interest rates.

In addition to a rate lock, there are also options available to help lower your interest rate! Your interst rate is the biggest factor to help save you money on your home loan and you lower your monthly payments! In our previous blog article, we talked about lowering your monthly payments and saving up to $65,000 over the lifetime of your 30-year loan by buying down your interest rate!

If you have more questions about the home buying process or mortgage rates, contact our Neighborhood Specialist, Sandy, for more information!