Tips For Locking In The Lowest Mortgage Rate

Tips for Locking in​ the​ Lowest Mortgage Rate
Whether you​ are a​ first time home buyer,​ or​ you​ have been purchasing real estate for years,​ one of​ your main goals other than finding the​ perfect piece of​ property is​ to​ make sure that your mortgage rate is​ as​ low as​ possible .​
Anyone who has had to​ navigate the​ tricky waters of​ the​ mortgage markets knows that rates can vary day by day and knowing when to​ lock in​ the​ rate can save you​ thousands over the​ life of​ the​ loan.
When looking for a​ mortgage one of​ the​ most important things to​ keep in​ mind is​ that competition is​ key to​ getting the​ lowest rate .​
Many first time home buyers make the​ mistake of​ not shopping around for a​ mortgage .​
They take the​ first offer that is​ presented to​ them and often end up with a​ rate that can be as​ much as​ one or​ two full points higher than rates for others with a​ similar financial background .​
They think that their real estate agent is​ there to​ help guide them to​ the​ best choice - when in​ reality they are there to​ earn their commission .​
the​ best advice for new home buyers is​ to​ always make sure that you​ separate your financial transaction of​ buying the​ house away from the​ process of​ finding a​ home .​
the​ rule of​ thumb is​ you​ should compare rates from at​ least three different providers,​ more if​ you​ have the​ time.
Even experienced real estate buyers can sometimes end up over paying their interest .​
the​ biggest gotcha is​ not locking in​ your rate when you​ had to​ the​ chance .​
This is​ especially true in​ times of​ economic downturn or​ when there is​ uncertainty in​ the​ credit markets .​
Often you​ have less than 48 hours to​ lock in​ a​ rate once presented to​ you​ by your lender .​
If you​ are uncertain whether rates are going to​ go up or​ down after you​ lock in​ a​ good rule of​ thumb here is​ to​ watch the​ 10-year Treasury note .​
Mortgage rates tend to​ follow the​ yield for the​ 10-year note more than they do any other short-term investment,​ including Fed rate adjustments.
When you​ do decide to​ lock in​ a​ rate make sure that you​ get it​ in​ writing,​ including a​ full disclosure of​ the​ terms .​
Oral agreements won't hold up should you​ need to​ pursue legal action .​
a​ written agreement protects both you​ and the​ lender from any miscommunications .​
you​ will know exactly what you​ are getting on​ what terms and how long the​ rate lock is​ good for .​
Typically,​ you​ want to​ aim for 30-60 days to​ give you​ enough time to​ find the​ house that is​ right for you​ .​
However,​ 30 days is​ becoming more standard as​ the​ rate markets continue on​ their rollercoaster ride.
You might also want to​ consider asking about a​ float-down agreement to​ lock in​ the​ rate .​
Under this agreement the​ lender keeps the​ rate at​ your locked in​ value should rates go higher,​ but if​ they decrease they lower the​ rate to​ match .​
the​ only drawback to​ these agreements is​ they can be expensive and depending on​ the​ size of​ the​ mortgage note the​ cost to​ enter into such an​ agreement may very well offset any savings you​ would gain unless the​ mortgage rate declined by more than half a​ point or​ more in​ many cases.
Locking in​ a​ mortgage rate is​ the​ best way to​ get the​ mortgage you​ want at​ terms you​ can agree with .​
It lets you​ focus on​ finding the​ perfect home of​ your dreams instead of​ worrying about fluctuating mortgage rates.
Tips For Locking In The Lowest Mortgage Rate Tips For Locking In The Lowest Mortgage Rate Reviewed by Henda Yesti on July 04, 2018 Rating: 5

No comments:

Powered by Blogger.