Mortgage Interest Rates Are Increasing?
I thought they went down? They did when the Fed initally announced their “Operation Twist.” If you haven’t locked in your mortgage interest rate on the refinance or purchase of your Fort Lauderdale or South Florida home on late Wednesday afternoon or Thursday morning your interest rate just increased. Many think that interest rates might fall further than they already did as soon as the Fed made their announcement. No one knows what the future holds but if you lock your interest rate in you win no matter what interest rates do.
By locking in your interest rate you are putting a ceiling or a cap on the maximum rate you will get assuming your loan closes within the number of days on your lock. If rates improve dramatically you can look to renegotiate your interest rate lower. Every bank has their own renegotiation policy so make sure to consult with your Mortgage Professional.
Most do not understand how interest rates work even those in the business. Mortgage-backed securities are what move interest rates and when they improve rates can get better. However, when rates improve the banks don’t always pass those savings onto you.
Make sure to speak to a Mortgage Professional when it comes to locking versus not locking and don’t believe everything you read or become greedy because you could lose a great rate.