Are You Gambling with Your Interest Rate?

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Filed under: Market Comentary

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This week, I am sharing my mortgage tip from Vegas! My daughter is at a dance competition, and I am here to support her. As I’ve been here, I’ve thought about the way that gambling can relate to mortgages in certain situations. Do you gamble with your interest rate lock?

What is an Interest Rate Lock?

When you are buying your home, and you know a deadline when you will be closing, then we have an opportunity to lock your interest rate for the loan. This lock means that you are not floating around with whatever is happening in the market.

We’ve seen some volatility this week, which has been tough to track and it is hard to know what will happen. The rates and closing costs are regularly changing as a result of the ups and downs of the market.

Whenever you are working with someone, and I don’t care who it is, make sure that you have a strategy for locking in a loan. No one really knows what is going to happen with interest rates on any given day. But, you can surely have a strategy. By looking at the trends and the interest rates that have been available, we can lock in a low rate and “take our chips off the table.”

Talk to the Experts

If you aren’t familiar with the industry, then the best thing that you can do is talk to an expert for advice. Don’t hesitate to ask questions about when you can lock your interest rate, when you should lock it, and how this decision will affect your mortgage payments.

Since things are always changing, the advice one week might be different from the next! But, many years of experience in the industry can be the best way to get a feel for the changes that might happen in the market.

When Should You Consider Rate Locks?

Do you want to learn more about rate locks and how they will impact your new mortgage? Contact me at Franklin Loan Center. I am happy to answer your questions! Don’t hesitate to call because I am always available to help with anything that you need.

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