Locking in the Best Mortgage Loan Rates

A home mortgage loan is the biggest item on an individual’s borrowing list and getting a good interest rate will help keep costs down.

It would be ideal to know when to get the best mortgage rate from a lender in Utah and lock it in; interest rates depend on what the markets are doing. An experienced mortgage lender is your best resource in this situation — they can review your paperwork and suggest the best option. There are a few factors which can also help in guiding your decision:

  • Understanding how – Being able to get the best rate and lock it takes some work. First, this rate is available only for 60 days and a borrower has to pay points. Those who can afford to pay extra points will get a low rate. Locking it will protect you from rising rates and you can lock in the loan period, as well.
  • Dropping rates – It’s quite possible that interest rates go down after you lock into one. If it’s small, then there is no reason to try to negotiate. If the drop is substantial, you could go to a different lender and get the lower one. There is a float down option on mortgage rates as well, which even Utah lenders will let you avail, for a fee. Choose wisely because if you can’t process the loan during this time, you could lose the facility and pay higher rates.
  • Perfect timing – The experts will be able to suggest a particular timeframe to lock in interest rates. The end of a week is better than doing it early. Mortgage rates are also stable on a Monday as the week is just beginning. Interest rates are based on market activity and can fluctuate wildly. Take a good one when it is available and only consider a lower rate if it is worth it.

When a borrower tries to lock in a rate, lenders have to offer a mortgage loan at the agreed rate even if the rates have changed in the time it takes to close.