Mortgage Interest Rates

Mortgage rates can make a big difference in how much you can afford to spend on a home, and what your monthly mortgage payments will be. Some lenders may be willing to negotiate their interest rates, but in most cases lenders will set their rates. The mortgage interest rate that a buyer is offered depends on a number of factors, but the primary factor they use is your credit history / credit score. When shopping for a mortgage, it is very important to shop around to get the best rate. This can be done by looking in the newspaper, or researching it on the Internet; updated rates are published frequently.

Locking-in a mortgage rate will ensure that you secure the best interest rate that you qualify for. This practice is especially helpful when interest rates are expected to rise in the near future. Some lenders allow borrowers to lock-in their mortgage rate without cost, while others charge lock-in fees in order to guarantee a rate. Interest rates can usually be locked-in for 30 to 60 days. If the lock-in  period expires, the borrower will be subject to the current market interest rates. Be sure to clearly understand your lender’s policies when it comes to locking-in rates. For your protection you should try to get documentation that shows the terms that you and the lender have agreed on.

AS985