Why Should You Lock In Your Mortgage Interest Rate?By Sheryl Landrum
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Mortgage interest rates fluctuate daily. If you are buying a new home or refinancing your current mortgage, a fluctuation in mortgage interest rates can make or break your chances of an affordable home loan.
What if mortgage rates go down and you are locked in at a higher interest rate? Unfortunately, in today's market, most borrowers who wait too long before committing find that their home loan is now at a higher interest rate and their mortgage payment is higher. Ask your loan officer if you can switch to another lender if interest rates drop or if there is a float down option on your current lock. Remember, switching lenders works better for borrowers refinancing a mortgage than when there is a home purchase with a finite deadline for loan closure.
Remember, the expression: "put your money where your mouth is?" The equivalent in the mortgage industry is a mortgage interest rate lock!
About the Author
Sheryl Landrum is a Senior Loan Officer with Charter Funding, Inc. in Carlsbad, California and a freelance writer on mortgage issues.
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