Lock Interest Rate
(Cornwall, ON, Canada)
Regarding When To Lock Your Interest Rate: Kate, Should I lock my interest rate? My bank in Canada is suggesting a home mortgage that is a 5 in 1. I might have that backwards! Essentially you lock in for 5 consecutive one year terms, I think.
The 1st year is 2.75 percent, the 2nd, 3rd, 4th and 5th year is -.5 off prime. I can convert anytime to a longer term if I see the rates are going up. For example, if I have 4 years left, I can lock in for 5 years.
Do you think this is a good idea? Or should I lock my interest rate in right now for a 5 or 10 year term since the current mortgage rates are so low?
Kate Answers: When To Lock An Interest Rate
Dear Colette, Thank you for contacting Get-Your-Best-Mortgage-Rate.com and addressing the universal question, "When should I lock my interest rate"?
Many years ago, one of my first co-workers happened to be from Canada so I know enough from our discussions that I do NOT have enough knowledge to offer you a specific answer about Canadian mortgage products.
Perhaps though this would be of interest to you.
Nitty Gritty Mortgage Rate Lock Agreements
Save some fingernail and learn the difference between good faith estimates and mortgage interest rate lock agreements
. When it comes to locking in your interest rate, it pays to get it in writing.
What happens when rates dip after locking in interest rates? Emotions run strong! At the bottom of this page, tune into homeowner opinions over breaking mortgage rate locks
Kate's Mortgage Rate Lock Guarantee
Kate's common sense approach to mortgage rate lock guarantees
is based on years of experience. You deserve reliability and peace of mind, don't you?
When you visit Kate's Mortgage Rate Lock Guarantee
, you can read what other Readers have written about locking in interest rates. You be the judge!
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