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How do you know when to lock in a mortgage rate?

On Behalf of | Aug 3, 2021 | Mortgages

A mortgage is usually the largest expense in someone’s personal budget. Fortunately, there are ways to keep your mortgage rate low, and locking in a good rate is one such example. It’s a tough decision about when to lock in such a rate in New York. Fortunately, some states allow for individuals to seek legal redress if they lock their rate in at the wrong time.

When is the right time to lock in a mortgage rate?

Mortgages are financially complex instruments, and when you are first shopping for a house, locking in a good interest rate is very important to determining your overall budget and ability to pay back your loan. According to mortgage experts, you should lock in your interest rates when you first sign a purchase agreement. From there, you can shop around for a company with the lowest rates and fees.

Keep in mind that you may not be able to take advantage of lower rates if you lock your rates in; it depends on the specific circumstances of your agreement. That is why it is so important to know what you are doing and have access to reliable legal professionals.

What if you lock it in at the wrong time?

If you believe that you were deceived into locking in an unfavorable mortgage rate, you may want to look into your options under real estate law. It may be possible to modify your mortgage rate or file a claim against a negligent party.

There is no question that getting the timing right on your mortgage can be a difficult proposition. As such, make sure to do your homework before locking down your rate.