Should I lock my Rate? - When you receive rate quotes for your mortgage, they are just that - quotes. You must request that your rate be locked to guarantee that rate. Usually, your rate can be locked over the phone, with a written application to follow.

Rate Locks are typically 15, 30 or 45 days. Typically, the longer the rate lock, the higher the interest rate you will pay.

If you do lock your interest rate make sure you get a written rate lock confirmation from your mortgage broker.

If your mortgage is through a sub prime mortgage lender you may not be able to lock the rate. In this case your rate will float to close, and your mortgage broker should keep you informed on any increases or decrease in your mortgage rate.

Ask your mortgage professional about the short term forecast of interest rates. There are many tools available to loan officers that will help them determine future interest rate behaviors. A good mortgage professional will have access to these tools and will use them. While they are not 100% accurate nor guaranteed, they are for the most part reliable and do provide valuable information on how to predict what the market will do in the upcoming week.

In a rising interest rate environment locking your interest rate may be beneficial for the peace of mind it offers. Obtaining a mortgage is a stressful transaction without the additional worry of increasing interest rates. If you would feel most comfortable with a locked interest rate be sure to let your loan officer know.

Ask your mortgage professional for a copy of the rate lock confirmation. This will give you piece of mind, knowing that you are getting the rate that you were quoted all along.

Locking in your interest rate. - If you believe that interest rates are going to rise before you close on your new mortgage, you may want to request that your loan be locked by your loan officer.

Locking in your interest rate is a very important and key part of your mortgage transaction and the home-buying process. You should always ask your mortgage loan officer for a copy of the confirmation page for your rate lock to verify that the rate has indeed been locked.

Locking in your interest rate is a lender's guarantee that your new mortgage will have a set rate, and fees. The lock on the rate will have a specific period of time. If your loan doesn't close in time, you could possibly face a higher interest rate.

Usually, interest rate quotes will include a lock period of 30 days. If you know your loan will take longer, say 45 or 60 days, you can either pay slightly more for a longer rate lock or choose to not lock the rate until closer to closing.

The longer you need to lock your rate, the higher the interest rate will be. For example a 90 day lock will result in a higher interest rate than a 30 day lock. If interest appear to be falling you may be better off letting the rate "float" than locking, even if you are approaching your closing date.

Do not assume that your mortgage professional has locked the rate for you. Ask for a lock confirmation.
If you do not lock the rate, it will "float", or continue to move with the market. It may go down, but it may go up.

Should I lock my Rate?
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