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Ask Shop Rate: Cary - Unknown State

Posted by  on Apr 16, 2009
 
I am purchasing a residence and will be taking a fixed rate 30 year mortgage. I have until...to lock in my rate. How do I decide when to do that, and what should I be asking...the lender? Knowing the exact time to lock in a rate is very difficult. Although we are looking to get that lowest possible rate, rates can change at a moments notice. Once minute you could lock in at a really low rate, and the next minute it could either drop or rise significantly.

Some lenders offer what is called a “float down” which allows you to lock in a lower rate if rates drop from the time you locked in your initial rate. Generally, lenders who offer this service usually allow you to only float your rate down once. Be warned that these float downs sometimes come with a fee attached, so ask your lender if they offer a free float down once your rate is locked.


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