What's Hot: A Closer Look at the Mansion Tax | New Renderings Show Retail Plaza, Park at 435-Unit Takoma Metro Development
Ask an Agent: When Do I Lock in My Mortgage Rate?
In this week’s installment of Ask An Agent, a reader inquires about when he should lock in his mortgage rate when buying a home. Jen Angotti of Long & Foster offers up some insight.
Question: At what point in the home-buying process do I lock in my mortgage rate? I know that real estate transactions can take weeks/months, and given how much rates have been bouncing up and down over the last few months, I am worried that I could miss a good opportunity if I am not able choose the exact day that I lock in my rate.
Answer: If a buyer makes an offer on a home and it is accepted, the contract is then ratified, which means all the parties have agreed to the terms of the contract. Ratification usually takes one to five days once the offer is submitted. While you should always contact your lender about the best time to lock in your rate, typically this happens immediately after ratification.
In the current market, many buyers may be interested in foreclosure or short sale properties where the contract process is a bit different, and the buying process can take 60 to 90 days. If you’re buying a short sale or foreclosure and the closing date is 60 days out, you need to consult your lender about the best time to lock in your rate.
As you noted in your question, interest rates have been all over the place in the last year. Because of the movement, I would recommend choosing a mortgage lender or bank that gives you the option to “float down” the interest rate if rates fall. A “float down” is when the lender allows the purchaser to lower their interest rate from the original interest rate lock. This will protect borrowers if rates increase but also give purchasers some downward mobility. Some lenders charge for this service, so make sure you ask!
See other articles related to: ask an agent
This article originally published at https://dc.urbanturf.com/articles/blog/ask_an_agent_when_do_i_lock_in_my_mortgage_rate/1206.
Most Popular... This Week • Last 30 Days • Ever
Clarion Partners, the owner of the Chevy Chase Pavilion, has filed modifications to i... read »
The new development keeps humming along in DC's Buzzard Point.... read »
Where it's cheaper to build than buy; Elon Musk is not making Texas happy; and the wo... read »
If you are tired of getting lost in their stores, IKEA has a new location planned tha... read »
The Townhomes at Michigan Park and Riggs Park Place are now selling their final homes... read »
At an ANC 4A meeting on Tuesday night, representatives from Whole Foods said that the... read »
The application to raze the infamous fast food location at New York and Florida Avenu... read »
While homeowners must typically appeal by April 1st, new owners can also appeal.... read »
The application has been filed for the American City Diner along Connecticut Avenue i... read »
The 650,000 square-foot project, designed by Adjaye Associates and Hickok Cole, will ... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
- Plans Progress For a New Grocery Store at Friendship Heights Mall
- The Stacks, Brooklyn Bowling and a Vermeer: The 5 Developments on the Boards for Buzzard Point
- Friday's Must Reads
- IKEA Opening Small Format, Delivery Only Location in Pentagon City
- New, Move-In Ready Townhomes at EYA’s Northeast DC Neighborhoods
- Whole Foods at Walter Reed To Open This Summer
- The End is Here: Raze Permit Filed For Wendy's at Dave Thomas Circle
- How to Appeal Your DC Property Tax Assessment
- Raze Application May Spell The End For One of DC's Last Diner Buildings
- A First Look at the Five-Building Centerpiece of the St. Elizabeth's Redevelopment
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro