What Does it Mean to Lock a Mortgage Rate?

By: Elizabeth Garner & Nicholas Johansen 

A lock-in rate or a mortgage rate lock is when you secure your rate percentage from the start of your contract to closing. So what does this mean to you as the home buyer?

When you begin the home buying process, one of the first things you’ll do is meet with a lender. Your lender will, of course, go over your finances and provide you with pre-approval for a loan on a home. Once you’ve found the home you wish to purchase, you move on to the next phase of the process:  submitting an offer to buy the home and securing your mortgage rate.

Locking in your rate will guarantee that rate percentage from the time of the offer to the signing table. This is an essential step for buyers since the rates can change daily and even hourly. Knowing your rate early on will help you to calculate your payments and know what to expect throughout your mortgage. 

We highly recommend locking in your rate as soon as possible -- especially since the Fed is making adjustments to help slow down the economy and stabilize it.

Photos By: Precondo CA and Scott Graham on Unsplash