SELECT A LENDER WHO OFFERS A "FLOAT-DOWN" OPTION ON A "LOCKED" INTEREST RATE
It's generally best to "lock" in your interest rate immediately after you have received contract acceptance. By "locking" in your rate and discount points, you are guaranteeing yourself at least the market interest rate available at the time of contracting for when you finally close on your loan. If rates go up during the time it takes to process your loan, you're "locked" in at the lower market rate that was available when you first went under contract.
What if rates should drop during your loan processing? Consider using a lender who will also "float-down" and "re-lock" the rate if the loan interest rates should improve prior to your closing. You then get the best possible interest rate available regardless of where interest rates should go. You will, however, have to ask each lender you contact if they offer an interest rate "float-down" program. Lenders do not generally volunteer the "float-down" option unless you are smart enough to ask for it.
We help our clients find the lenders who not only have "float-down" programs, but who offer the most competitive rates as well.
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