Lock-In Your Loan
Hello, Vincent Team clients and Friends! Getting ready to buy? Take a look at a lock-in loan. A lock-in holds an interest rate and points for a specified period of time, usually 30-60 days. Depending on the lender, you can lock-in at the time of application, during loan processing, at the time of loan approval, or later. We have a great lender in house, Michael Ludwig with Guaranteed Rate, and he will answer any of your questions.
Why would you use a lock-in loan? A lock-in loan application is useful when interest rates are on the rise, protecting against rate increases. If interest rates are falling, it may be best to wait until after application approval to lock-in.
Lock-ins aren’t always free. Some lenders charge up-front fees, which may or may not be refunded upon application withdrawal or denial. Other lenders charge the fee at settlement. The fee may be a flat fee, a percentage of the mortgage amount, or a fraction of a point added to the lock-in rate.
So, with the market continuing to rise at a seemingly unstoppable pace, it may be wise to get a lock-in loan and guarantee the rate!