How long is your interest rate locked??

REAL WORLD: Some lenders will appear to have lower rates than others to try and “get your business”…only for you to find out that the interest rate was really good for only 7 or 15 days. In the real world it is nearly impossible to close a loan in 7 to 15 days. Best advice: Ask them how long this rate is good for or locked in. Make sure it is good for at least a 30 day rate period. See: How to read a Good Faith Estimate, Important dates Nav tab-Good Faith Estimate

Will this be the interest rate I will actually get? Just ASK!!!

REAL WORLD: Some lenders will appear to have lower rates than others to try and “get your business”…only for you to find out that the interest rate was really good for only 7 or 15 days. In the real world it is nearly impossible to close a loan in 7 to 15 days. Best advice: Ask them how long this rate is good for or locked in. Make sure it is good for at least a 30 day rate period. See: How to read a Good Faith Estimate, Important dates Nav tab-Good Faith Estimate

Best advice: Ask your lender when the cutoff period is to accept the loan offer and/or how long that the interest rate will be guaranteed (locked in). 30 days or more is acceptable. See: How to read a Good Faith Estimate, Important dates Nav tab-Good Faith Estimate

Best advice: a good lender will ask you specifically if you are agreeing to terms and/or tell you that you are locked in to the interest rate and fees. If you are not clear, just ask…” Am I locked in, and for how long?” As of January 1, 2010 some lenders will have you sign an “intent to proceed” form. At this point you should be locked into your interest rate. . See: How to read a Good Faith Estimate, Important dates Nav tab-Good Faith Estimate

Vanilla advice…follow it!

Real World: Rule of thumb: The higher the interest rate a lender charges, the lower the fees a lender should be charging you! Make sure you are getting your BEST RATE possible…Get more than 1 estimate!

Rates are still great!! But, for how long is the real question…

There is not doubt that low interest rates have made buying or refinancing a home very attractive for the past year or so. Unfortunately, how long those rates will remain low is now a serious question to ponder for potential buyers and sellers. Recently, the Federal Reserve has slowed down the purchase of US bonds which some say (and I believe) is the reason why interest rates have remained low for the period. Common sense will say that rates will begin to rise slowly as the market will have to “self correct” to what rates should be without any “artificial stimulation”. So…with all that said, is it time to lock in low rates for the long term…or is it time to roll the dice a little longer? I do know one thing…it’s always better to “be a pig and get fat, and not a hog and get slaughtered”