James V. Hecker

Santa Clarita California

  • About
    • About
    • Privacy Policy
    • Site Security
  • Mortgage Info
    • Buyer Info
    • Seller Info
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Calculators
    • Mortgage Glossary
  • Properties
    • All Properties
  • Blog
  • Testimonials
  • Contact

Why Should My Clients Lock In Their Interest Rates

December 12, 2013 by James Hecker Leave a Comment

Why Should My Clients Lock In Their Interest RatesInterest rates fluctuate frequently, often depending on the news. If you are considering refinancing your home, your loan officer may suggest locking in the interest rate on your loan.

There are some valid reasons why this is a good idea including:

Saving Money For The Long-term

Over the life of a loan, an increase of as little as one-quarter of a percent can cost thousands of extra dollars. Spending a small amount of money now to lock in a rate can save money over the life of the loan.

Your loan officer will explain the difference in rate increases initially, over a year and over the life of the loan.

You May Not Qualify At Higher Rates

Whether you are considering refinancing your property or you are buying a new home, you may discover your rate just qualified for your loan to meet the required debt-to-income ratios. An interest rate increase may mean you will not qualify for the loan.

Closing Times May Impact Their Decision

If a loan is scheduled to close within 30 days, it may be a good idea to consider locking in the interest rate your loan officer is offering. The lock will help protect against potential increases in rates during that period of time. This will help you plan your final closing costs and ensure your monthly payments will not be higher that estimated.

Don’t Forget: Upcoming News Impacting Rates

There are often issues that will have a serious impact on interest rates. For example, the current Quantitative Easing program by the Fed is keeping rates low. Should the Fed reveal they intend to modify or taper their program; chances are fairly good that rates will take a slight hike.

Loan officers can help you unwind the news and make sure your refinance is not negatively impacted by interest rate increases.

Not every refinance customer will want or need to lock in their interest rates. However, once a loan has been approved, you should consider talking with your loan officer about the potential of locking in. The small fee that may be required could save you thousands of dollars over the life of your loan.

Filed Under: Mortgage Rates Tagged With: Mortgage Rates,Mortgage Interest Rates,Refinancing Your Home

Leave a Reply

Your email address will not be published. Required fields are marked *

James Hecker

Contact James

Focus Lending Group, Inc.
BRE #00902195 • NMLS #214601
CALL 661.295.7030
FAX: 661.244.4932
james@james4loans.com


APPLY WITH JAMES →

Connect with Me!

Search articles

Rate Quote

  • This field is for validation purposes and should be left unchanged.

Latest Articles

  • Getting A Mortgage When Self-Employed: What You Need To Know
  • On Time, Every Time: How Being Late on Monthly Payments Can Affect Your Mortgage
  • What Is A Loan Contingency: An Overview
  • What’s Ahead For Mortgage Rates This Week – January 23, 2023
  • An Often-Overlooked Trick Can Help You Afford A Second House

Previous Posts

Categories

Our Location


27201 Tourney Rd. Ste 200
Valencia, CA 91355

Copyright © 2023 · Powered by MySMARTblog