Lock A Mortgage Rate At The Right Time

November 06, 2020 by Dan Green

Comparison shopping your mortgage is smart, but locking your rate at an optimal time is smarter.

Overly aggressive rate shoppers don’t always get today’s lowest rates.

It’s because mortgage rates are unpredictable.

Mortgage rates are based on the price of mortgage-backed bonds and bonds move like stocks — news and unexpected developments can lead to a sharp change in price.

Sometimes, price changes work in your favor; mortgage rates drop. Other times, mortgage rates increase. And, when mortgage rates increase, that’s when your maximum home purchasing power drops and your long-term homeownership costs rise.

You can’t predict or protect against mortgage rates — they’re going to do what they’re going to do. But, you can have a plan.

If the thought of rising mortgage rates makes you uncomfortable, then shop your lenders quickly and lock in with the lender providing your preferred combination of rates, fees, and service.

Otherwise, keep shopping until you’re sure you’ve found the best mortgage deal. It’s a process that could span days.

And, during those days, the broader market may rise or fall, but at least you’ll know that on the day you lock that loan, you’ll be getting the best of what’s around.

Mortgage markets wait for no one.

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