If you are considering a fixed rate loan we may suggest to pre-lock your interest rate depending on the bond market. The fixed rate market can be very volatile at times forcing lenders to make mid-day rate changes whether the changes are up or down. Interest rates are a function of Wall Street; if the bond market is up - interest rates are down and vice versus. We have always believed when in an upward market; "when in doubt - LOCK".

Once you have chosen to pre-lock and if for some reason your loan does not close escrow by the expiration date of your rate lock, lenders will generally extend your current rate lock for a specific number of days (if your rate and pricing are still within the market) OR they will re-lock your rate at worst case pricing. If you have decided not to pre-lock, you are simply "floating" with the market until we request to lock.

Most lenders offer 21 and 30 day lock periods however, they also offer longer lock periods such as 45 or 60 days for an additional cost between an .125 and .25 point.

If you are considering an adjustable rate loan, you still may want to pre-lock to protect the current start rate, margin, etc., however; adjustable rates are not as volatile as the fixed rate market and do not change as often as fixed rates.