Trade tensions between the U.S. and Mexico and China continue to contribute to interest rates dropping, hitting their lowest point in 21 months, according to Freddie Mac. The Mortgage Bankers Association have also reported that refinances are at a 3-year high.
So, if you’re out shopping for a home, should you lock now, or wait to see if rates will continue to drop or go up? The answer is you can lock now, and if the rates go up, or fall, even more, you’re still safe, if your lender has rate lock capabilities.
A mortgage rate lock is a guarantee from a mortgage lender that when you lock into a rate, it will be held over a certain period, whether the rates go up or down. That allows the borrower to devote time to getting the right home and not worry about rate fluctuations. Rate lock periods usually vary between 30 to 90 days, and while some lenders charge a fee for the service, others will do it for no charge.
Not all lenders offer the option to lower a rate during a rate lock, so make sure and do your homework. This process is called a “float down” and requires due diligence on the part of the borrower to request the lower rate as they get close to closing.
For more information on how you can get a 90-day RateSecureTM rate lock from NASB, visit us here or contact one of our mortgage loan specialists at 855-465-0753.