by Chris from Greensburg, Pennsylvania USA
Ask Kate about Interest Rate Lock: Kate, Where do you think mortgage rates are going?
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Should I lock in my FHA loan at 5.75 percent? My wife and I had figured on a lesser rate but do not want to get stuck with a mortgage rate even higher than that. What do you think interest rates will do? What is the lowest FHA rate you know of?
Dear Chris,
All home buyers across the nation have wondered at one time or another about the direction of mortgage rates and how to know when to lock a rate.
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As I've mentioned before, there's nothing that leaves homeowners feeling more vulnerable than locking in mortgage rates. So I'm never surprised when I'm asked to predict the direction of rates.
In fact I receive this inquiry so often, I have a prepared statement. A guarantee of sorts. After more than 20 years of originating mortgages, I'm still excited to tell you my advice is unchanged.
Interest rates will either - drum roll please - go up, go down or remain unchanged.
Please don't be fooled into thinking I am making light of such a serious subject. Instead I am stressing the fact that no one knows exactly what rates are going to do tomorrow. So go to Kate's Mortgage Rate Lock Guarantee to see why I also say:
If in doubt, lock in your mortgage rate!
You will also want to follow the links at the side of this page leading to surprising facts regarding rate locks. In addition, by visiting Mortgage Rate Lock Q and A, you'll discover solutions based on inquiries from other homeowners.
Best Wishes,
P.S. Go to my Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.
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I finally came to grips with closing my mortgage company.
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My Interest Rate Lock Guarantee - Help for timing your rate lock.
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Questions to Ask BEFORE You Lock
Ask Kate about locking - Ask a question and get an answer from Kate.
Search Readers' questions and Kate's answers at Mortgage Rate Lock Center
Interest Rate Lock - Hi Kate, Should I lock in my FHA loan at 5.75 percent? What direction are rates headed? You can ask Kate too!