Consider the following four things when deciding whether or not to lock in your mortgage interest rate:
- Lock in your rate as soon as you know you have a good deal in front of you, and you know roughly when you can close (30 to 60 days should be the longest lock period).
. - Lock it in with a lender who has the option of a “float down” if possible. If rates get better, you can participate in a portion of that improvement.
. - Lock it in with a lender who has a liberal rate-lock extension policy. No rate-lock extensions are free. Some even expire beyond the ability to extend. Make sure, whenever possible, that you work with a lender who will allow you to extend your lock if for some reason your deal takes a little longer to close than anticipated.
. - Don’t think about it very long. The rates go up a whole bunch faster than they come down. If the above is to your liking, lock!
No one can time the market. No one knows – plain and simple. If anyone tells you what will happen to interest rates in the future, consider not working with them – they think they know things they could not possibly know.
We do know what moves rates. We can even know anecdotally (after the fact) what did move rates. But then, we also know who won the Super Bowl – on Monday morning. We even know why, almost exactly why.
But, we never know what will happen to them. Lock in your interest rate with the above options as soon as you are able to.
If you have questions about locking in interest rates, use the comment link below to contact us with your questions and we’ll get back to you with answers.
Real estate experts say now may be a better time than ever to invest in a home improvement or home remodel project to help boost your home value.
According to Remodeling magazine, at the height of the real estate bubble, homeowners could expect to recoup 87 percent of their home improvement costs when selling, while the magazine estimates that a homeowner can currently only recoup 60 percent of their investment. Still, a good time for a home remodel is now.
A home equity line of credit is an excellent start to a home remodel, thanks to historically low interest on mortgage rates. For qualified homeowners, who would not be jeopardizing their savings or equity, it makes sense to invest in their home, especially if they plan on living there five years or longer.
The construction industry is still rebounding, despite some improvement from last year so as a result, home improvement contractors have discounted their rates, saving homeowners money. As an added bonus, the costs of materials like plywood, lumber and drywall has also come down.
A good first home improvement might be installing energy-saving appliances, as well as windows and insulation. The savings on your energy bill won’t entirely pay for the home improvement, but it will save you some cash year after year.
It might also be a good time to update your home and bring it up to date with other homes in the area. If you’re planning on staying in your home, a home remodel or small home improvement project will help you enjoy it all the more. Home remodeling experts say, while this is not the time to remodel just because you’re not necessarily thrilled with your kitchen, it is a perfect time to remodel an outmoded 1960s or 70s kitchen or bathroom.
Again, with mortgage rates bound to eventually go up, for qualified homeowners, it makes sense to refinance their homes now, or take out a home equity line of credit, and invest in the future.
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