When you receive rate quotes for your mortgage, they are just that - quotes. You must request that your rate be locked to guarantee that rate. Usually, your rate can be locked over the phone, with a written application to follow.Rate Locks are typically 15, 30 or 45 days. Typically, the longer the rate lock, the higher the interest rate you will pay.
Ask your mortgage professional about the short term forecast of interest rates. There are many tools available to loan officers that will help them determine future interest rate behaviors. A good mortgage professional will have access to these tools and will use them. While they are not 100% accurate nor guaranteed, they are for the most part reliable and do provide valuable information on how to predict what the market will do in the upcoming week.
In a rising interest rate environment locking your interest rate may be beneficial for the peace of mind it offers. Obtaining a mortgage is a stressful transaction without the additional worry of increasing interest rates. If you would feel most comfortable with a locked interest rate be sure to let your loan officer know.
Ask your mortgage professional for a copy of the rate lock confirmation. This will give you piece of mind, knowing that you are getting the rate that you were quoted all along.
If you do lock your interest rate make sure you get a written rate lock confirmation from your mortgage broker.
If your mortgage is through a sub prime mortgage lender you may not be able to lock the rate. In this case your rate will float to close, and your mortgage broker should keep you informed on any increases or decrease in your mortgage rate.
