Tuesday, November 5, 2013 - Article by: Prospect Financial Group, Inc. -
Many borrowers in today's market are requesting that their lenders offer them a rate lock for as many as 360 days. Especially those buyers that are planning on obtaining a jumbo loan for their home purchase - they are looking to find lenders that are willing to commit.
The most common rate locks last from 30 to 60 days, however lenders can offer a much longer rate lock. No matter how long you are planning for your closing to take, it is important to lock in you rate. Rates can quickly change in today's lending environment and you can miss out by not locking in your interest rate.
Extended rate locks offer a lot of security, giving you time to search for the perfect home without stressing that your interest rate may change if the market changes. Yet, since they offer so much security, they will come at an additional cost. Lenders require buyers to put a deposit down if they are hoping to get an extended rate lock.
You also should not expect a rate lock to happen automatically. It is important to discuss with your lender to determine when and how long you should lock your rate for. If you are afraid of committing to a rate lock, fearing that rates might go down, you can also obtain a float down rate lock. A float down lock allows you to float down once during your lock period to a lower interest rates if rates happen to improve from when locked. Float down options also come at an additional cost, since they are the best of both worlds.
At Prospect Financial Group, Inc., we have rate locks ranging from 30 to 360 days, which will give you peace of mind while you find your dream home. Call us today to get a free rate quote at 858-605-0952.
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