Dither about your rate lock3 of 7Homeowners who delay locking a good mortgage rate risk making a refi uneconomical.While floating, you take the risk that mortgage rates will go up. Rates could rise enough so that it's no longer worth the time and expense of refinancing, says Bob Walters, chief economist for Quicken Loans.Also, rate locks have expiration dates. So, it's a good idea to build a cushion of a few days in case there's a delay in the loan closing, says Dan Green, mortgage planner for Waterstone Mortgage in Cincinnati.If you have a 30-day rate lock, it's better to set the closing date on the 28th day than the 30th day -- just in case there's a snag that delays the closing by a day or two. Related Articles:Conventional refinance?'Cash-in' refi takes offLow score = high paymentLow cost refinanceRelated Links:Refinance home or move?How to kill a loan closingMortgage calculatorBest mortgage for you? advertisement
Homeowners who delay locking a good mortgage rate risk making a refi uneconomical.
While floating, you take the risk that mortgage rates will go up. Rates could rise enough so that it's no longer worth the time and expense of refinancing, says Bob Walters, chief economist for Quicken Loans.
Also, rate locks have expiration dates. So, it's a good idea to build a cushion of a few days in case there's a delay in the loan closing, says Dan Green, mortgage planner for Waterstone Mortgage in Cincinnati.
If you have a 30-day rate lock, it's better to set the closing date on the 28th day than the 30th day -- just in case there's a snag that delays the closing by a day or two.
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