Leverage your lock, refresh outdoor spaces, and check local listing trends | Better Mortgage

Abstract

One of the steps you'll take in the process of applying for a mortgage or refinancing a current loan is "Locking" your interest rate. While interest rates may fluctuate during the course of the underwriting process, locking guarantees you a specific interest rate for a set period-typically 30-60 days. Locking your rate helps determine exactly how much your mortgage payment will be each month. Until you lock, your interest rate are subject to daily fluctuations based on how the mortgage market is doing. If you're ready to lock your rate make sure you know exactly when that lock term expires and plan your shopping strategy around that timeline. If you have a favorable rate but your lock deadline is approaching, you may need to pay for a rate lock extension-this fee typically costs. Would you be able to pocket a substantial profit from the sale? If the answer is yes, consider that those savings might be undercut by purchasing a more expensive home and/or a mortgage with a higher interest rate than what you're currently paying.