Missing a rate lock on a refinance or purchase can be expensive and financially painful.  So how do you know the best time to execute your rate lock?

First and foremost, lock when the rate and payment make sense.  If you are refinancing to save money, and at the start of the process the rates are where the refinance makes sense, lock it.  Waiting to time the market can be a costly mistake.  If rates drop during the process you can always try and renegotiate the rate lock with your current lender.  Most lenders will do some negotiating rather than lose you as a customer.

Same thing holds true for a purchase.  This rate lock may even be more critical.  Most loan approvals are rate sensitive.  This means that if the rate goes up too much, the borrower may not qualify for the loan!  There goes the purchase escrow.  If the rate and payment sound good, and are affordable, lock the rate in.

Remember the most important thing about timing your “Mortgage Rate Lock In”, lock as soon as possible!

By Bill Grasska, Teles Financial/ www.telesfinancial.com

For more information, please contact Bill Grasska at 310-442-4040 or email him directly at bgrasska@telesfinancial.com.

Filed under: Uncategorized on September 4th, 2009