Lock Or Float A Mortgage Interest Rate

by Guadalupe
(Comfort ,Texas, Kendall)

Lock Or Float A Mortgage Interest Rate? My refinance rate is 5.25 percent for a 30 year mortgage. My broker is recommending to float my interest rate.

Guadalupe continues... Are there any additional fees involved? How risking is floating my mortgage rate? My original loan was for 6.78 percent.

Kate Answers: Should You Lock or Float a Mortgage Interest Rate

Dear Guadalupe,

To lock or float a mortgage interest rate, now THAT is the question!

Is it better to lock in an interest rate or allow it to float as long as possible?

Consider this! When you float your mortgage rate, you are subject to moment by moment financial market fluctuations.

No Backsies With Today's Mortgage Rate Changes

If you've read the Francis books by Russell and Lillian Hoban, you know what I mean when I say there are no backsies. Once you pass by a rate by not locking-in, suffice it to say, No Backsies.

In other words, when yesterday's low mortgage rates pop up today, they are no longer available at the identical cost. Unless they come back down.

Don't Ask Newton About Mortgage Rate Trends

So couldn't you just wait for rates to trend back down? Well, here is where Sir Isaac Newton's apple analogy doesn't fit.

When mortgage rates spike, there is no guarantee when they'll come back down. In fact, most observers agree that interest rates go up more quickly than they fall.

Rarely do homeowners or home buyers hit The Bottom when contemplating a mortgage interest rate lock. Think about it this way, you can't recognize The Bottom, that is until rates have begun to climb!

What Is The Lowest Mortgage Rate Anyway

Remember mortgage rates are unpredictable. So, if you are going to attempt timing a lock-in, you owe it to yourself, your home and your mortgage to read
Kate's Mortgage Rate Lock Guarantee first.

Lock or Float a Mortgage Interest Rate - Do Ya Like 'Em or Not

Remember, once you make that decision to lock, don't look back. Rates COULD plummet tomorrow. But if you lock based on satisfaction with today's mortgage rates and fees, how could you go wrong?

Locking or Floating - Mortgage Fees Hidden and Disclosed

Guadalupe, you asked about fees. The best way to guard against hidden fees (and guarantee disclosed fees) is to know which questions to ask before you lock mortgage rates. So read this. Lock Mortgage Rates - It will just take a moment.

This has become my mantra, "If you don't get your closing costs in writing, your rate and fees are not guaranteed." Read about it here: Mortgage Broker Fees - Again, it will just take a couple of minutes.

Guadalupe, one more thing. I'd like to hear back from you. Let me know if this page was helpful to you. Comment here on Lock or Float a Mortgage Interest Rate.

Or Ask Kate another question here.

Best wishes,

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