Consumers have choices when it comes to financing their mortgage. If you do not consult with a professional mortgage lender, you may never know about the options you have. Most people want the lowest mortgage rates available. One of the best methods for making sure that your loan is processed using current mortgage rates is by locking in the lowest rate. A professional mortgage company can help you decide if locking in the current mortgage rates is feasible for you, or if you need to go with a float rate.
The reason some mortgage companies can provide a lower interest rate, is that they have a mortgage lock policy. Not all mortgage companies can promise that you will get the lowest current mortgage rates. If you want to make sure that you get the lowest mortgage rates advertised, you should discuss this option with a lender who can lock current mortgage rates. To get approval for locking the current mortgage rates, you must have an appraisal completed, reviewed and accepted. Within the normal lock timeframe of 30 or 45 days, the loan must close and funding completed. You will not need to worry about current mortgage rates rising, as your rate stays at the same level.
Sometimes people need additional time for closing and have to go with a float rate. In a scenario such as this, the current mortgage rates fluctuate, and you may end up with a higher interest rate. However, if the current mortgage rates go lower, and you can lock at that time, you could get a terrific deal.
If there is a reason that you need more time on a rate lock, you can request an extension. If the rate lock time expires, there may be a fee for the extension. The cost depends on several factors. You should discuss this with the mortgage company if you plan to use the rate lock option. Locking in current mortgage rates while they are low is the best way to get lower monthly payments and save you thousands of dollars off the cost of your loan. For more information, read this website.