Save Signed Interest Rate Lock Agreement For Free

Lower interest rates make it cheaper to borrow. This tends to encourage spending and investment. This leads to higher aggregate demand (AD) and economic growth. This increase in AD may also cause inflationary pressures.

Locking in your mortgage rate is generally worth it when rates are trending higher and you want to protect yourself from paying a higher rate at closing.

Once locked, the loan's interest rate won't change ? no matter what's happening with the economy ? barring any changes to your application details. You're protected from higher rates, but you won't get a lower rate, either, unless you have the option for a one-time "float down."

Rate lock fees will vary based on the length of your rate lock period and interest rate chosen. We will refund the rate lock fee if your application is denied. If you withdraw your loan application or it is cancelled, the upfront extended rate lock fee may not be refunded unless the application is for a VA loan.

If you're good at keeping an eye on market trends and you predict a rate decrease, you might be more comfortable with floating. If you think rates are likely to stay the same or increase, you might be better off locking.

in or rate lock on a mortgage loan means that your interest rate won't change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application.

But what if you lock a mortgage and then rates fall? Unfortunately, you can't just unlock your rate to avoid paying higher interest. Your best option is to ask your lender about a rate ?float down,? although this will cost you an additional fee. Switching lenders last minute is also an option for refinancers.