If you’re shopping for the lowest refinance mortgage rates you might be wondering if you should lock or float your rate. Choosing to lock or float your refinance mortgage rates on the wrong side of the market could cost you thousands of dollars. Should you trust big companies like Amerisave when it comes to locking or should you consult a broker? Here’s on article on HSH.com with 5 Golden Rules for locking current mortgage rates:
1. Never lock in a rate before the contract is signed.
2. Know what your “on or about” closing day is.
3. Most lenders offer 15, 30, 45 and 60-day rate locks.
4. Choose a lock period that gives you the comfort of knowing you have enough time to get through closing.
5. The interest rate is not locked at the time of submission to the bank. The borrower chooses when that happens
One of the most common mistakes homeowners make is focusing only on getting the lowest refinance mortgage rates at the expense of fees. The closing costs you pay on your hew home loan make or break the deal you’re getting as you’ll have to recoup these expenses before benefiting from your lower payment. The more you pay, including lender junk fees, the longer it’s going to take breaking even on your out-of-pocket expenses.
You can learn more about getting today’s lowest mortgage refinance rates without paying unnecessary fees or markup by checking out my free Underground Mortgage Videos.