Today, UrbanTurf offers a brief explanation of what it means to lock in an interest rate.
When a homebuyer locks in a mortgage rate, that means they have agreed to a specific interest rate for a specified period of time with their lender, usually ranging from 30 to 90 days. This agreement ensures that the borrower will receive the same interest rate, even if market interest rates increase during that period.
When a borrower applies for a mortgage, the lender will typically offer a quoted interest rate. However, this rate is not guaranteed until the borrower decides to lock it in. Once the rate is locked in, the borrower and the lender are bound to that rate for the agreed-upon period, even if market interest rates rise or fall during that time. If the borrower decides to delay the rate lock, they run the risk of the rate increasing, which could result in higher mortgage payments.
Locking in a mortgage rate may come with some fees or costs that vary depending on the lender and the terms of the loan. Additionally, some lenders may offer a rate lock that lasts longer than 90 days, but these longer locks may come with higher fees or a higher interest rate.
See other articles related to: locking in a mortgage rate
This article originally published at https://dc.urbanturf.com/articles/blog/what_does_it_mean_to_lock_in_your_mortgage_rate/20652.
Most Popular... This Week • Last 30 Days • Ever
This week's Best New Listings includes an expansive three-building property in Maryla... read »
UrbanTurf created Pipeline, a searchable database of multifamily projects that are un... read »
As we head towards the end of the year, UrbanTurf is wrapping up its coverage of larg... read »
Prices in Wesley Heights, a DC neighborhood to the south of Spring Valley bordered by... read »
Today, UrbanTurf takes a look at the distinct differences between these two popular f... read »
A new report out this week found that homes in the DC region are selling nearly a wee... read »
When Amazon announced in 2018 that it would be opening a second headquarters in Virgi... read »
A revised plan is on the boards for a group of five townhouses in the middle of China... read »
The proposed district would encompass the neighborhood's commercial strip along Conne... read »
WTOP is reporting that The Heights, an eight-stall food hall that is taking over the ... 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 »
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. Start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro