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When Is The Best Time To Lock In A Mortgage Rate?

By Eric Goodwill

When shopping for a new home and mortgage, one thing you should always look for is having the ability to lock in a mortgage rate. If you do have the option of locking in a rate, there are various considerations you should make when determining when it is the best time to lock in your rate.

When You Are Offered A Low Rate

The first situation when it may be the best time to lock in a mortgage rate is when you are offered a very low rate. If you are shopping for mortgages and have a hard time finding a good rate, you need to make sure you take advantage of the best rate you get. By locking in a low rate, you will save hundreds of dollars per month.

When You Are Within a Month of Closing

The second situation when it may be the best time to lock in a mortgage rate is when you are within a month of closing on your home purchase. When you lock in a mortgage rate, your rate will probably only be locked for a period of 30 to 45 days. If you do not purchase a home in this time period, you will lose your mortgage lock privilege.

When You Think Rates Will Increase

The third situation when it may be the best time to lock in a mortgage rate is when you believe that interest rates will increase. If you think interest rates are going to increase, then you would be best served by locking in a mortgage rate as soon as possible. This will rid you of the risk of rising rates.

Related posts:

1. How Do I Know If I Should Lock In A Mortgage Interest Rate?
2. What Happens If I Don’t Lock My Mortgage Interest Rate?
3. When Is It Safe To Lock In My Mortgage Rate?
4. If I Lock In My Mortgage Rate Am I Committed?
5. Should I Lock In A Mortgage Interest Rate?