that must be paid to guarantee the rate can change over time,” explains Lisa Smith. Next, you must ensure your mortgage rate lock will last long enough to cover the entire home-buying process from start to finish. Some closing processes can last a month or longer. If you suspect this will be your situation, talk to your lender about locking down a rate for the full length of that drawn-out process without paying any penalty fees. Keep in mind that if the home doesn’t close before the end of the agreed-upon mortgage rate lock period, then the guaranteed rate that you “locked in” will expire; further, any deposit you paid could be forfeited to the lender. Finally, don’t assume that a mortgage rate lock somehow provides unlimited protection. While a mortgage rate lock protects you against increasing interest rates during inevitable shifts in the housing market, it will also prevent you from grabbing an ever-lower interest rate that comes along. Before you finalize your rate agreement, consider asking your lender if they would offer a mortgage rate lock “float down,” allowing you to exchange your current rate for a lower one. Important Note: Something else to keep in mind is that there are also potential tax programs and benefits available to homeowners who are downsizing. The tax programs and benefits will vary from state to state, and the types available will also depend on age brackets — though there are certainly options available for seniors. Do some research and consult with your agent for more information about your particular area of the country to see what’s out there that could potentially benefit your specific situation.
Key Takeaway:
Home loan shopping can be tricky, complicated, and time-
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