Should I Lock my Mortgage Rate?

In today's volatile interest rate environment, many customers face the question "should I lock my mortgage rate and, if so, when?"  Reliance First Capital knows answer depends on the individual and the circumstances they are facing, as well as how much risk you are willing to take regarding rate changes. Either way, given the decision's financial impact, it clearly highlights the importance of working with a mortgage professional you trust and who will continually keep you updated on your loan application's status.

is important to note that unless you have it in writing from your lender, you can assume your rate is not locked.

In simplest terms, a rate lock is a "promise" from your lender to give you a certain mortgage rate if your loan application is approved closed before the lock expires. The rate lock does not obligate the customer to accept and close the loan but rather requires the lender to stick to the specific rate. If a consumer is offered a rate they like, typically they choose to lock it in for a specified period of time (most loans are locked for 30 days, but some lenders offer longer term rate locks). 

Keep in mind it can cost you to lock in a rate.  And the longer the rate lock, the more you may be required to pay to lock in the rate. Each lender's policy and fees pertaining to locking rates may vary and fees to lock in for a longer period of time may cost more. If your rate is not locked, it is "floating" which means the interest rate and payment for your mortgage may change, usually in accordance with the market, until you lock-in a rate with your lender.

Reliance First Capital can find the loan option to meet your unique lifestyle and financial goals. Learn more about Reliance First Capital by contacting us at 866-735-9004 or visiting us online at www.reliancefirstcapital.com.