You Need to Remember
the Ins and Outs of Locking in Interest Rates
So your lender may forget to tell you
that you should lock in your rate, or tell you itís
locked when it isnít. If you have given your representatives
every chance and they fail to mention it, place one
red flag on their side of the interest rate negotiation.
Then mention it yourself. You will get some various
responses, but if they say you shouldnít or canít, itís
time to find another lender. If you get a lock, get
it in writing and signed by the lender!
Two Choices When Locking in an Interest
Rate on Home Mortgage Refinancing
If the lender agrees to lock in the
rate, you have two choices. You can lock it as it is
and bet that it wonít go down. To make this bet intelligently,
you should keep your finger on the pulse of the economic
world. Watch the news, read about the rate trends, and
see if there are any announcements from the government.
Try to plan your lock around those factors. If thatís
not possible, consider a different way of dealing with
Some are able to get a lender to agree
to a rate lock with changes that would only benefit
the borrower. This amounts to a lock-in with a stipulation
that if the rates go above that number, the borrower
will not pay any more interest. If the rate drops, the
borrower would pay the lower rate. If you have excellent
credit, timely payments, and a good history, a lender
should be willing to make this agreement with you. If
not, shop around a little more. Your reputation and
hard work on keeping your credit score high amounts
to less risk for the lender. That should pay off in
some way for you.