Posted by Admin . on Thursday, May 10th, 2012 at 2:25pm.

Q: Should I lock in the mortgage rate?

A: Because the interest rate market fluctuates constantly and is subject to quick movements without notice, locking in a mortgage rate with a lender certainly protects you from the time your lock is confirmed to the day it expires.
Lock-ins make sense in a rapidly-rising rate environment or when borrowers expect rates to climb during the next 30 - 60 days, which is typically the amount of time a lock-in remains in effect.
A lock-in given at the time of application is useful because it may take the lender several weeks to prepare a loan application.  These days, however, automated loan practices have cut the time quite a bit.
Lock-ins are not necessarily free.  Some lenders require you to pay a lock-in fee to guarantee both the rate and the terms.
If your lock-in expires before you close on the loan, most lenders will base the loan rate on current market interest rates and points.

If you have any questions, feel free to call RE/MAX of Boulder at 303.449.7000 or visit


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