Locking In Your Refinance Rate

Today, my focus is on locking in a mortgage rate, which is very challenging, since rates fluctuate continuously.

When you lock a rate, you’re banking on the fact that interest rates will rise over the short term (typically 45 to 60 days). You ‘win’ if that happens. However, you can ‘lose’ if the opposite occurs.

No one can predict with certainty what interest rates will do over a short period of time. But, you can help set yourself up for a good outcome by knowing the answers to the following questions:

  1. How long can you lock the rate?
  2. What happens if the lock expires and the loan isn’t closed?
  3. Can the lock-in period be extended?
  4. What happens if interest rates fall during the lock period?

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