QIf Rates Are Rising, Should I Lock In A Loan Rate?
AThis can be a solid strategy, but rate locks come with a cost, typically one-eighth to one-quarter of 1 percent of the loan amount. When an interest rate is locked in, the lender promises a certain rate as long as the loan closes by a certain date. The cost and time period of the lock-in vary with the lender. Some lenders will allow you to lock in an interest rate before you find a home to purchase. You may have to complete a loan application and go through loan approval to qualify. If you qualify, you are pre-approved for a specific loan amount with a rate lock-in for a specific time period, usually 30 to 60 days.