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Mortgage Interest Rates
Lock In Your Interest Rate
When you seek to buy a home and have succeeded in securing a mortgage loan, an important decision that can guarantee your financial security is the decision of when to lock-in on your mortgage interest rate. You will have to understand the process so that you can decide the best time to lock-in.
Interest rates are been quoted on the basis of fluctuating rates of the federal government. When the Federal Reserve raises or lowers interest rates, you will discover the corresponding fluctuations in the rates offered by the mortgage lenders. A lock-in is a lender's pledge to guarantee a specified interest rate if you purchase a home within a specific period of time. The interest rate will be the rate published by the lender on a specific date. If the interest rate rise after you lock-in, you are definitely going to maintain the rate at which you locked-in and if the interest rates drops, you will still maintain the same rate at which you locked-in. When you lock-in an interest rate, you secure that rate and the terms associated with it.
Many lenders make it mandatory for you to pay a specified amount of fee before you can lock-in an interest rate. You need to require from your mortgage representative on their policy before lock-in. The lock-in is only valid for a specified number of days so if you lock-in too early, the lock-in might expire and you will be mandated to pay up additional fees to extend the rate. It is best that you have a good idea on the closing date to prevent the lock-in from expiring. You have to ask your lenders properly in advance before signing a loan application.
For you to lock-in on your mortgage interest rate, it is advisable that you do it via fax or written correspondence to keep up your own records, because most lenders might just require a phone call or verbal lock-in instruction.
If you need to figure out the different mortgage payments based on the fluctuating interest rates you can use my mortgage calculator. It will help you figure out the best option for your situation. | 
