Best Time to Lock in a Mortgage Rate Explained in New Loan Love Mortgage Rate Lock Guide
San Diego, CA (PRWEB) July 06, 2013 -- When is the best time to lock in a mortgage rate? LoanLove.com, a website with the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and U.S. financial landscape in order to help them obtain a home loan that they will love, helps their readers to understand the ins and outs of mortgage rate locks in a recently posted guide. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals. To fulfill this goal LoanLove.com is continually updating their website with new articles and guides. The new guide continues to help new and experience homeowners with the best rate lock advice.
The Loan Love article explains: “Simply put, a rate lock – or a points lock, for that matter – ensures that the rate and number of points you were quoted when you applied for your mortgage will still be in effect when you go to settlement. Not all lenders allow borrowers to lock in rates or points; of those that do, some lenders allow you to lock in your rate and points when you file and some allow you to lock them in during the application process. Typically, most borrowers prefer to lock in their rate and points when they submit their applications- especially in a market when interest rates are more likely to be rising (as they are now). That said, just as a lock protects you from potential rate increases while your loan is being approved, it can also mean you are unable to take advantage of decreases in the interest rates that may occur while your loan is being processed.”
So when is the best time to lock a mortgage rate? According to Loan Love, this really depends on the situation. As mentioned above, in a market where loan rates are only expected to increase, it would be wise to lock in the mortgage rate at the first available opportunity. However there are exceptions. The Loan Love article explains: “In a market where you aren’t sure whether rates will fall or not, you might choose to float your rate. That means that although you lock in the rate when you make an application, the lender will adjust the rate to any lower interest rate that occurs while your application is being processed. Of course, if rates rise, in most cases the rate will “float” upward with them. Since points also typically fall with interest rates, some lenders also allow points to rise and fall during the application process.”
In any case, if a borrower decides to lock at any time during the mortgage rate lock period, they should always remember to ask to have the terms of their lock-in provided in writing, not over the phone. If discrepancies occur, it will be important to have everything in black and white. Borrowers should review the agreement carefully before signing to avoid unpleasant surprises at closing.
For more advice on locking in mortgage rates, please visit Loan Love for the full article.
Kevin Blue, LoanLove.com, http://loanlove.com/, 949-292-8401, [email protected]
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