Understanding Mortgage Rate Locks When Buying a Home in Florida
When buying a home in Florida, mortgage interest rates can affect your monthly payment and overall home-buying budget. Because mortgage rates can change throughout the loan process, your lender may offer a mortgage rate lock after you are under contract on a property.
A mortgage rate lock generally allows a borrower to secure an agreed-upon interest rate for a specific period, subject to the lender’s terms and loan requirements. This can provide protection if mortgage rates increase before closing. If rates decrease after you lock, however, whether you can receive the lower rate will depend on your lender and the terms of your rate-lock agreement.
How long should you lock your mortgage rate? That decision may depend on your anticipated Florida real estate closing date, loan program, property, lender requirements and other factors affecting your financing.
Before choosing whether to lock or continue to “float” your mortgage rate, talk with your licensed mortgage professional about your loan, closing timeline and available options.
While your lender handles your mortgage financing and rate-lock decisions, Title Insights works behind the scenes on the title and closing side of your Florida real estate transaction.
Learn more about the Florida home-buying and closing process at YourTitleSource.com.
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