21 September 2010
…then it’s probably a good idea to find a bank or a lender which can provide you with the rate hold option. It means the bank will hold you a rate for 90-120 days.
Let’s see what it means in practice. For example, you get yourself a 3.69% rate hold for 120 days. Then suppose the economy recovers strongly and the rates jump to 4.50% or more during 3-4 months. In this case you’ll save yourself 0.81%.
And of course it’s important to understand that a rate hold itself means absolutely nothing if you don’t meet the lender’s qualifications. You should always consult your mortgage professional before making such a serious decision. The mortgage broker will always find the best rate and the most profitable for you variant.