Since mortgage interest rates are on the rise, home buyers can save considerable cash by locking in a reasonable rate when they find one.
During the housing boom, interest rates were extremely low – generally between 5.5% and 6.5% – and very stable. So borrowers often didn’t bother to ask lenders to lock in their rates regardless of market fluctuations. If one good interest rate deal disappeared, another one was generally right around the corner.
But today the mortgage market is very volatile, and rates are trending upwards. So losing out on a good deal may mean it’s gone forever. If buyers see a bargain, say experts, they should pounce.
“If you hear of a rate that seems to be much better than the rest of market, get it in writing and lock it in,” said Steve Habetz, a veteran mortgage broker in Connecticut.
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