The Best Time to Lock In Your Mortgage Rate

Real Estate Agent with Brighton, Mi - Keller Williams

Financing Solutions with David Reed

The Best time to Lock in Your Mortgage Rate


Visit Reed's Website

"What do you think about rates ... should I lock in now or wait to see if they fall further?" Think I've been asked that a time or two over the past 18 years? You better believe it.  It's a good question-one that goes through every single buyer's head at some stage. 

A quoted interest rate is no good unless you've confirmed, in writing, that your loan is indeed "locked," or guaranteed for a designated period of time. You need to be proactive with your locked rate as well and don't assume that your loan officer already locked you in. In fact, your loan officer shouldn't lock in your rate without your specific instructions. If it was locked in and rates went down you'd be pretty mad, wouldn't you?

While neither real estate agents nor loan officers are in the business of predicting the future, it's still possible to make a prudent choice in the face of uncertainty. Would you rather lock in your rate and watch rates fall or not lock in your rate and see rates go up?

If you decided to lock and rates go down, you've secured the market rate that you were happy with. But if rates went up and you didn't lock, you'd be paying for that mistake for the rest of the loan.

There is an even worse possible scenario: After not locking in your rate, rates shoot up and you no longer qualify for the loan. So it's important to ask yourself:  "Which way would I rather be wrong?"

If you are comfortable with the rate you've been quoted, talk to your real estate agent about the possible consequences of waiting to lock it in.

Written by David Reed, author of Mortgage 101 and Mortgage Confidential.

Looking to buy or sell, please visit my website at: Search for Michigan homes without the hassle. Save your searches for easy use and save your favorite homes for future reference.

Lisa Bender, Keller Williams Realty - - Direct: 810-534-2058 - Email:

Comments (1)

-- Casey Brischle
Columbia Bank - Spokane, WA
Spokane Home Loan Mortgage Professional

Especially right now.  With all the inflation concerns, gas prices soaring and the fincial markets unpredictable, if you like the rate, lock it.  dont think.  I have a few clients that missed out on 5.25 on a 15yr fixed, b.c they thought it was going to go lower and there was no talking them out of it...well now they are 1/2 point away from teh 5.25 they passed on!

Jun 12, 2008 09:47 AM