Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Justin Froiland from Fairway Mortgage, and discussed how to lock in your interest rate for your mortgage during the closing process. You can reach Justin at 605.695.1429 or email@example.com. His office is located at 412 5th St., Brookings SD 57006 or on the web at www.BrookingsMortgage.com
How to Lock in Your Interest Rate
- Hey, good morning everybody. Shane here from Brookings Home Team powered by Century 21. Justin here from Fairway Mortgage. It is a holiday, but Justin has been kind enough to come in and do our Monday Morning Mortgage Tip, even though it is a holiday. So, hopefully you guys have something fun planned today. You got a chance to take a day off. But thanks for watching, and... Justin take it away with our Monday Morning Mortgage Tip.
- Perfect, thank you Shane. Yes, today I wanted to talk a little bit about locking in your interest rate throughout the mortgage process. I'm sure most of you are aware that rates have been going up a little bit as of recently. Overall, they're still in good shape, but they are going up a little bit. So, when I'm working with my customers, in the mortgage process, I'm always talking about locking in that interest rate right away. Even with my people that I've got prequalified, that haven't found a property yet, we're still having that conversation. Even though, you cannot lock your interest rate in until you've found that property, and you've worked with Shane to get that accepted contract in place. And at that point, you can lock your rate in immediately. There's different lock terms. For example, we can do a thirty day lock, a forty-five day lock, or a sixty day lock. And depending on when you're closing is set up to happen, will dictate which of those lock periods that we do. So, it's very important to have the conversation right away with your lender. And don't just assume that your rate is locked in. You always want to have that conversation. And one other option, if anyone out there is thinking about doing new construction or building a new house or anything along those lines, we have some certain extended rate lock options. Where you can actually lock it for up to 120 or 180 days on that new construction. But those are only available for new construction properties. So...
- That's kind of what I wanted to go over today. If you have any comments or questions please feel free to leave them in the comment thread, and we'll make sure to address those.
- Alright, yep, sounds good. Now is there a cost to lock those in?
- So it depends, that gets into a little more in-depth conversation. There's certain options where you can choose to buy down your rate, and elect to, essentially, increase your closing costs and lower your interest rate. But there is not an actual cost to locking that rate in.
- At least with myself.
- Yeah, yeah.
- I can't speak for everyone.
- You bet. So, of course, again as usual, if you have questions for Justin please reach out to him. I'll have his information on the top Excuse me, on the top, on the bottom, or on the sides. Wherever your device allows you to see that. He's very easy to get a hold of. He answers generally on the first ring, and if he doesn't I know he'll get back to you. So if you reach out to him, he'll be happy to help you out. We'll be back next Monday for our Monday Morning Mortgage Tip. Have a great holiday. Columbus day or I don't even... As realtors and mortgage lenders, we don't know what the holidays are.
- We're working.
- Yeah we're working. You guys have a great holiday. Thanks for watching, and be sure to share and tag this video with anybody else you think would be interested in watching it as well. So, thanks again guys.
- We'll talk to you later.
- Thank you!