Rates change daily, therefore, we do not guarantee a rate until it is locked. This can be done anytime within 6-months of closing at your request. The shorter the rate lock period, (with all factors being the same), the lower your rate will typically be. Most clients lock their interest rate within 45-days of closing.
We Shop Rates for You
We shop your rate for you with 12+ investors, such as Wells Fargo, SunTrust, Franklin America, Citi, PRMI, Chase, US Bank, and others. By doing so, we assure that the rate offered is competitive.
When should You Lock
I recommend locking as soon as you are comfortable with the rate/payment, keeping in mind current market conditions. For example, if the experts are recommending to wait and watch rates for a possible improvement, rates may still go up. That said, by locking you may miss out on rate reductions which would lower your monthly payment.
Protection for You
Once your rate is locked, if rates increase, you are not affected. What if rates drop? If the market improves 3/8th or more your rate automatically floats down to the lower rate. If the market improves less than 3/8th, your rate remains as locked.
What if the Rate Expire
If we lock your rate but there is a delay in closing...and your rate expires, there is a daily fee for extending the rate. This is rare since most closings happen on time, however, there could be a delay for various reasons such as: waiting on title, repair completion, builder/seller issues, etc.
Did You Know
You can get money by accepting a higher interest rate! This is a strategy many clients use if they need money to close for expenses. It may be a good strategy anyway if you are not staying in the home long. Another option is to buy the rate down. With record low interest rates, this is typically not done, however, if you are planning on staying in the home long term, it may be worth considering, if you have available funds. We will discuss all options.