Is it worth it to lock in a mortgage rate? How much is the fee usually?
by Mortgage Rates on Sunday, October 3rd, 2010 | 3 Comments
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It’s probably a good idea to lock in the rate. They can go up and when they start to go up.. They go up fast. I just locked in my rate 2 days ago and I’m glad I did because they’ve already gone up almost 1% since I did that. The $420 is only going to be a one time thing and doing that will save you a bunch of money in the long run on interest.
Several times this year rates have risen 0.5% in less than a week.
You did not mention your loan amount, so find a mortgage calculator site and look to see how much more your monthly payment will be if rates go up 0.5%. Also check to see what your monthly payment will be if it goes up 1.0%.
You will, most likely, see that $420 is a “rather small” one-time only price to pay when you consider what could happen to your monthly payment if you do not lock in the rate.
Are you seriously willing to pay 6% for a rate of 4.75%???
You should really rethink this.
What is your loan amount going to be?