Securing Your Mortgage Rate in a Touchy Market - MortgageDepot

Abstract

Locking in your mortgage rate protects you from rising interest rates from the time that you apply for your loan until closing. Some lenders offer a ‘lock and shop’ program that allows the borrower to lock in a desirable rate before shopping for a home. Most rate locks last between 15 and 90 days, with the shorter rate lock periods have cheaper rates than the longer ones. If your rate long expires before you close. On the downside, you’ll pay a slightly higher rate. If a rate long expire. If the rate long expired, you might be able to pay extra to continue to continue the lock period. If you go this route, you can pay a significantly higher rate than you otherwise would in exchange for the convenience.