INTEREST RATE LOCK
LOCKING IN A MORTGAGE INTEREST RATE
Mortgage interest rates are always changing. So if you like a rate from a lender, you can ask them to lock it in. This means you’re guaranteed to get that rate, regardless of whether market mortgage rates go higher or lower, for a specific period of time.
THE IMPORTANCE OF A LOCKED RATE
No one can predict what will happen with interest rates. If you think rates will go up, or if you don’t want to have to worry about changing rates, it makes sense for you to lock in a rate.
You can decide to lock in anytime—from the day you choose your mortgage, up to five days before closing. Although if you wait, you run the risk that rates could go up.
WHAT WILL IT COST?
Rate locks can carry a fee, which varies from lender to lender and depends on how long you want to lock the rate. Rate locks usually range from 30 to 90 days. You may also pay a fee if you extend your rate lock past the initial period (such as your closing date is delayed).
Results of the mortgage affordability estimate/prequalification are guidelines; the estimate isn't an application for credit and results don't guarantee loan approval or denial.
All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Other restrictions and limitations apply.
