Understanding Loan Locks
- Anyone who barely qualifies for today's rates should lock as soon as possible.
Should You Lock Your Rate Today?
Refinancing is a large portion of today’s mortgage market. In fact, approximately 4 of every 5 loan applicants today are looking to refinance. With so many consumers wanting to refinance, I am getting more and more questions about loan locks. Since rates seem to be going only one way (downward), many homeowners are wondering if they should lock the rate.
In all cases that I have seen, if you lock your rate and are happy with it, you end up being satisfied with the loan you receive. Should rates go up, you’ll be protected against paying more on your mortgage.
It's clear that anyone who barely qualifies for today’s rates should lock as soon as possible. This is because a change in credit score, debt, or even job title could have you losing out on significant savings in your refinance. Locking your loan fixes the offer you’ve been given and ensures that you get what you want out of your refinance. After all, isn’t that why you decided to refinance in the first place?