What Does It Mean to Lock in Your Mortgage Rate?
✉️ Want to forward this article? Click here.
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.
story continues below
loading...story continues above
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
UrbanTurf is re-publishing an article with updated links that is a step-by-step way t... read »
Another missing middle development has been proposed along Brookland's main throughfa... read »
Development along the Maryland side of the Rhode Island Avenue corridor continues to ... read »
The big residential plans in the works for the hotel site are changing a bit as the r... read »
MRP Realty and Florida Rock have plans in the works for two large new residential bui... read »
- How to Obtain a Basic Business License For Your DC Rental
- From One Home to 9 Apartments Along Brookland's Main Drag
- The 3,000 Units in the Works From Route 1 to Hyattsville
- 630 to 570 Units: A Slight Change Of Plans For Arlington's Americana Hotel Development
- Plans For 600 Apartments Next To Nats Park Heads To Zoning Commission
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!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro