There are plenty of decisions to be made when purchasing a home. You finally have a house under contract and have chosen a lender, and now you have to decide whether and when to lock your rate! The truth is no matter how experienced your loan representative is, no one has a crystal ball when it comes to rates, so it really comes down to personal preference. The important thing is to use your best judgment. Don’t let ego get in the way of making the decision, so you can have bragging rights with your friends. Here are some things to consider when making your decision:
- Are mortgage rates trending downward or upward since you put your dream home under contract?
- Are you prepared to take the risk if rates go up?
- Even if rates drop somewhat with today’s low rates, will it really make much difference to your payment?
- Will an increase in rates affect your budget?
One final thought…it is much easier for interest rates to rise than it is for them to fall.
Whatever you decide, make sure you are dealing with a mortgage specialist that is knowledgeable, helpful and is willing to talk you through the decision!