What is a rate lock? It protects the borrower from rate fluctuations for the duration of the lock period. With the announcement of the Federal Reserve for interest rate hike in the closing months of 2015, here are 7 reasons why you should lock in your loan rate now before the recent fed hike impacts your mortgage rates.
- If you are a home buyer currently floating a rate or a homeowner wondering whether now is a good time to refinance, consider yourself on alert. Lock in today and consult your VA Loan Lenders Cherry Hill NJ.
- You should lock in now because raising interest rates can make it more expensive for you to borrow money to pay for home loans. Anyone looking to take out a mortgage will find rates higher and their loans more expensive.
- To insulate yourself from adverse effects of the interest hike, you lock in your mortgage interest rate for as short of a term as you can while you can still afford to pay the monthly payments.
- If you are trying to secure a fixed mortgage, or attempting to refinance, the rates will likely creep up ahead of when the Fed actually implements the interest hike. VA Lenders Cherry Hill NJ can help you make a timely decision when it is right.
- The Federal Reserve’s announcement for interest rate hike would also affect your plans for Lines of Credit and Home Improvement Loans.
- Getting a mortgage loan is a big commitment for you. You should learn about all the variables involved in getting a mortgage and the impact these variables have on your interest rate. So why not lock in now and grab the low interest rates today.
- If you happen to have a lease or similar contract, it is suggested that consumers with six months or less left on a lease should consider looking into getting pre-qualified for a loan before the Fed interest hike. Locking in a fixed rate lease means a lower interest rate for the life of the loan.
Do not wait for the interest rate hike! Strike and lock in now while the rates are low.