How Long Can You Lock Your Mortgage Interest Rate
Q: My wife and I are buying our first home. Interest rates are going up. How long can we lock our mortgage interest rate? Caleb, Belleville, NJ
A: Mortgage rates have increased significantly in the last year from historic lows. Lenders normally will let pre-approved home buyers lock the interest rate of their mortgage loan for between 2 weeks and 2 months. Lenders can theoretically offer a rate lock for as long as they choose. I have seen 120 day mortgage rate interest locks in real estate transactions I’ve been involved in, however, the borrower paid a fee for that extended rate lock. Lenders will always hedge to protect themselves. Thanks for your question, Caleb.
For more real estate tips and information visit my blog at geraldlucas.com.