When to lock in Mortgage Rates in Oregon; 6 Signs it’s Time

When to lock in Mortgage Rates in Oregon

So, you are all set to buy a home in Oregon, with a mortgage loan? And don’t know when to lock in the mortgage rate, you have come to the right place.  To help you make a decision, in this blog we have rounded up some 6 signs which tell you when to lock in mortgage rates. 

What is a mortgage rate lock?

A rate lock is an interest rate which applies on a mortgage for a specific period of time. The mortgage rates which are offered by the lender to the borrower will remain the same for a period of time. The guarantee protects in the event when interest rates go up. 

No matters, whether the interest rate stay remains the same, go up or, the borrower doesn’t have to worry about it. The rates go up and down daily, but a rates lock ensures that your interest rate won’t shift after approval of the loan. 

What if you need more time?

In the event, if the loan doesn’t approve by the time the rate lock expires, then you are likely to pay some additional fee to extend the time period. If the rate goes down, then lock the interest rate. But, most of the lenders won’t let you negotiate when rates go down, you have to find your best rate by shop around and lock it at another lender. 

The challenge of perfect timing:

Generally, locks last for 60 days. Which you have to set your locked-rate within 60 days of your mortgage loan approved. As per the experts’ recommendations, the mortgage rates are more stable on Mondays as compared to Wednesday or Friday. Getting the best mortgage rates on loan saves thousands of dollars. No locking mortgage rates early can mean having to come up with high-interest rates. So, as long as you shop around to find the best mortgage interest rates, the payment increases due to the higher rate. It is advisable to lock the rates as soon as possible. 

Shorter lock period equivalent to lower mortgage rate:

When you choose a term of your mortgage rate lock, don’t be super long, shorter lock period means lower mortgage interest rate. 

•    7-day lock: free. 

•    15 days lock 0.125% of the loan.

•    30 days lock 0.25% of the loan. 

•    45 days lock 0.375% of the loan. 

•    60 days lock 0.5% of the loan. 

If you have 60 days for closing a term agreement. You can take 30 days to lock in at a lower rate. 

The best time to lock your mortgage depends on below-mentioned factors:

•    If the rate goes up, you may want to lock in a rate quickly 

•    If rates are steady, you can wait until 10-15 days of closing rate. 

•    It is very rare when the rate goes down. 

After understanding the current environment. In this volatile market, it is advisable to lock as soon as you signed the agreement 

Interest Rates are Volatile:

Today’s market is volatile- they are going high and down in a short period of time. For this reason, it is recommended to lock the rates as early as possible. 

Interest Rates are rising: If interest rates are going up, it’s a sign to lock quickly, instead of rates waiting for spiral higher rates

Final Say:

Locking the rates at the right can save thousands of dollars over the life of your loan. It is worth considering locking in your rate. If you experience difficulty in locking rate, you can take the help of the loan specialist, who can guide you in the right direction and may save your thousands of dollars by suggesting right lock-in interest rates.

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