Should I lock in my rate?

In order to lock in your interest rate you must first decide on these four factors:

  1. Loan program.
  2. Interest rate.
  3. Points.
  4. Length of the lock.

When you are satisfied with your chosen loan program, interest rate, points (costs), and length of lock, it is necessary to lock your loan. You cannot close your loan unless it is locked. Longer locks mean higher rates, and possibly higher fees.

If your lock expires, you may be able to relock with your lender, but it may cost you more in fees or a higher rate. You should also be aware that if rates drop after you lock your loan, you will not be given the lower rate. Most lenders will allow you to extend your lock, but once again, you may have to pay a fee for the extension.

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