When Should I Lock My Rate?

When Should I Lock My Rate?

Whether you are refinancing or buying a home, here are a few things to think about when you are trying to decide whether to lock your rate or wait!

What is a rate lock?

Rate locking means, exactly that… locking your rate. When you lock your rate on a particular day, that rate will stay with you throughout closing. That means if rates go up while you are still waiting to finalize your financing, you will keep the rate you locked into.

That sounds good, right? But what happens if rates go down once you locked?
Here at Fairway Mortgage Corp. we have the ability to renegotiate the lock and float it down to the current market rate.

So when should you lock your rate?

For refinances, our philosophy for clients is to lock when the rates align with your goals.

If you are buying a home, we suggest securing that rate early in the process simply because you do not have time to play the market. On a purchase of a house there are contracts deadlines we have to follow. Again, if during the purchase process the rate does go down then we will have the option to renegotiation down to that lower rate.

Here at the RJ Baxter Team with Fairway Mortgage we always have your best interest in mind. If you have more questions regarding rates, home loans, or refinances please call us at 303-670-0137 or email baxterteam@fairwaymc.com. It cost nothing to get your questions answered!