by this? Some buyers “jump” on a low rate as soon as it becomes available (after home loan approval, of course), and this often works out to the advantage or favor of the buyer. Keep in mind that there is still the risk of having to pay for an extension if you don’t find the right home in time, but as mortgage rates are generally expected to rise, locking down a low rate as soon as soon as you can could be a good idea, even with the risk. But you don’t necessarily want to rush. “Because of the fear of rising rates, many borrowers rush to lock in a rate as soon as possible,” Lisa Smith explains. “While this might seem to be a good strategy, it isn’t necessarily the best course of action in all situations.”
Step #7. Discuss with Your Lender
Talk to your chosen lender (bank or otherwise) and ask specific questions before you lock down a rate. First, make sure you know and understand your lender’s rules regarding mortgage rate locks. Different lenders will have different rules, and this could be one of the determining factors when you’re doing your home loan shopping. Be absolutely clear about the lender’s mortgage rate lock rules. If you’re unsure, ask. For example, ask if your locked rate can or will change in certain situations. Second, keep in mind that locking in a low interest rate can come with a cost. Some lenders charge a mortgage rate lock deposit upfront, and others offer a rate lock in exchange for a slightly higher interest rate than the current prevailing rate, or require the borrower to pay a certain number of points, either fixed or floating. “Fixed points refer to a set number of points; with floating points, the interest rate is locked in, but the number of points
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