Mortgage rates have risen steadily week after week – but it’s not all bad news for today’s home buyers.
Historically speaking, rates are still incredibly low. In fact, they’re actually at their lowest point in 40 years.
Still, the incremental weekly jumps might have some potential buyers worried.
Will I still be able to afford a mortgage?
Do I need to wait another year to buy a home?
Should I start looking now before rates go higher?
These are all questions today’s buyers are wondering, and fortunately, all hope isn’t lost for those looking to buy a home in 2018 … at least not with a rate lock.
As we’ve all seen, mortgage rates are constantly in flux, changing daily, weekly and monthly on the regular. As a home buyer, a rate lock protects you from these future fluctuations, allowing you to secure that day’s mortgage rate for a set period of time. Most lenders offer rate locks in 30, 60, 90 or even 120-day periods, meaning you can lock in the day’s rate for a month or more while you look for the perfect home.
In order to lock in your rate, you’ll need to provide details about your income and monthly debts, and your lender will pull your credit. They may also require a small fee.
If mortgage rates are predicted to rise (and you know buying a home is on your radar), you’ll want to lock in the day’s rate as soon as possible. This will safeguard you from future rate hikes and make your home purchase more affordable in the long haul.
Be careful to read the fine print though, and make sure you fully understand the rules that come with your lender’s lock-in. How long does it last? Will you have to pay fees if you don’t close on your home by the time the lock-in period is up? Will they honor lower rates if they drop? Get the full break-down of what the lender’s rate lock entails from start to finish.
With new steel and aluminum tariffs and potential Federal Reserve rate hikes on the horizon, many economists are predicting mortgage rates to rise in the coming months. Want to make sure you’re not vulnerable to those jumps? Contact SnapFi to lock in your rate today.