When you buy a home, it’s easy to focus on the price of the house you want to buy when deciding whether you can afford it. But unless you’re making an all-cash offer, the interest rate you get on your mortgage will significantly influence the affordability of the property you choose. A seemingly small change in interest rates may mean the difference between being able to afford the home of your dreams and not being able to make the monthly mortgage payments. For example, if you get a 30-year fixed rate mortgage for $400,000 at a rate of 4.5%, your monthly payment will be almost $175 more than it would be if you got the same loan with a rate of 3.75%.

Since interest rates fluctuate continuously and many factors—from trade deals with China to the latest jobs report—can influence the direction in which they move, watching rates go up and down can be a little unnerving if you’re in the market for a new home. A rate lock can help protect you from the volatility of the market, allow you to create an accurate budget and provide peace of mind throughout the application and origination process.

With a rate lock, you secure your rate for a certain amount of time, usually 15-60 days, but HFG also offers longer rate locks for new construction homes. As long as your loan details don’t change before closing and you have a fixed-rate loan, that’s the rate you’ll pay for the duration of your mortgage. Locking your rate is easy. Just give your HFG Licensed Mortgage Professional a call, so they can make sure you understand where the market is today and where it’s likely to go moving forward. When you’re comfortable with the rate available to you, simply let them know you’re ready to lock your rate.

If you have questions about the market or want to lock your rate, give us a call today and we’ll be happy to help.

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