The rate lock might be the most complicated issue mortgage borrowers need to understand.
- A rate lock is a guarantee that the lender will offer the borrower a specific combination of interest rate and points. A point is a fee or rebate equal to 1 percent of the loan amount.
- Also essential to a rate lock is a time period, typically 10, 15, 30, 45 or 60 days.
- A rate lock protects the borrower from rate fluctuations for the duration of the lock period. If market rates rise after the rate is locked, the borrower will still get the lower rate, to the lender’s detriment.
- But there’s a downside: If rates fall after the rate is locked, the borrower might not be able to take advantage of that opportunity.
County Properties, 26 years of brokerage experience, trust . We offer free counseling in real estate regarding; home values and information on options of selling vs. Foreclosure.
Click here to get loan information before the rates go up. To get started on viewing homes, condos, investment properties, pre-foreclosures, bank owned foreclosures (REO’s) or thinking of selling your property, please contact me today for free counseling at (619) 540-5811.
New Pro-Property Search. We will setup a customized search for you by our professional REALTOR® Team. Sit back relax and shop at home! We will make changes to your Pro-Property Search any time you like, just let us know. Have fun!
By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net/ and I’ll be happy to follow up and take great care of them.
[iframe http://realestatelistings.1parkplace.com/47042/Sandicor/search 780 2100]