5 reasons why Houston homebuyers should lock their rates.
The median price of a Houston area single-family home jumped 15.4% in 2021 — and interest rates are likely to jump too — so this is a really good time to learn about rate locks.
A rate lock is an agreement from a mortgage lender that they will charge you (the borrower) an agreed-upon interest rate if the home loan closes before the end of the lock period … even if interest rates increase.*
The Federal Reserve has indicated it plans to raise rates at least once during 2022 and a rate lock is one way you may be able to save on the amount of interest you’ll pay for your mortgage. Here’s what else you need to know:
At The Gibraltar Group, we’re committed to educating our clients so they can choose the right loan for their unique needs. Contact us today!
*Pricing for long-term rate locks are based on Day pricing with specific add-ons determined by the lock term chosen. Float down option is based on current pricing plus a float down fee. Terms and conditions apply. Talk with your Loan Officer for details.
A rate lock is an agreement from a mortgage lender that they will charge you (the borrower) an agreed-upon interest rate if the home loan closes before the end of the lock period … even if interest rates increase.*
The Federal Reserve has indicated it plans to raise rates at least once during 2022 and a rate lock is one way you may be able to save on the amount of interest you’ll pay for your mortgage. Here’s what else you need to know:
- A rate lock typically ranges from 14 to 60 days. That being said, other options may be available. Ask your lender for details.
- A rate lock is finalized after the application has been accepted, but before the underwriting team thoroughly reviews your credit history, income, property appraisal, and other details.
- Rate locks can be a smart tool when interest rates are exceptionally low and/or expected to increase. (The cost of a rate lock varies by lender, so always verify before making a final decision.)
- You may have the option of a lock extension if your loan doesn’t close before the lock expires. If you believe an extension would be beneficial to you, ask your loan officer about them to get the details.
- If you’re concerned about rates dropping, you may want to consider a “float down” option. This feature would allow you to take advantage of a lower rate, while remaining protected against rate increases.
Smart consumers make smart decisions
Although we can’t predict the future, nearly everyone in the real estate industry expects rates to go up in 2022 and we want to help you be a knowledgeable homebuyer who is ready for anything.At The Gibraltar Group, we’re committed to educating our clients so they can choose the right loan for their unique needs. Contact us today!
*Pricing for long-term rate locks are based on Day pricing with specific add-ons determined by the lock term chosen. Float down option is based on current pricing plus a float down fee. Terms and conditions apply. Talk with your Loan Officer for details.