RE/MAX Real Estate Guide and FAQ - Questions and Answers for Real Estate Mortgages and Financing.
RE/MAX Valley Real Estate, Boardman, Ohio

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RE/MAX Valley Real Estate

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RE/MAX
Valley  Real Estate
1006 Boardman - Canfield Rd.
Boardman, Ohio
(330) 629-9200

RE/MAX Real Estate FAQ - Buying Your Home, Working With A Real Estate Agent

Your Mortgage - Questions and Answers
'Interest Rate Lock-Ins'

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How do you "lock in" an interest rate?
Most lenders will have preprinted forms that set out the exact terms of the lock-in or rate lock agreement, as it's sometimes called, and may require a fee to do so. Others may only make an oral lock-in promise on the telephone or at the time of application. You'll do yourself a favor if  you always get it in writing.

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Do you advise a lock-in on a home loan?
A lock-in given at the time of application can be useful because it may take the lender several weeks or longer to prepare a loan application (though automated loan practices are cutting this time dramatically). However, some lenders require borrowers to pay lock-in fees to assure particular rates and terms. Be sure to check that your loan's rates and points are guaranteed and that your lock-in period is long enough to both complete your loan and work through the other contingencies in your purchase contract. If your lock-in expires, most lenders will offer the loan based on the new prevailing interest rate and points.

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What is the value of a mortgage lock-in?
Locking in a mortgage rate with a lender is one way to ensure that same rate still will be available when you need it. Lock-ins make sense when borrowers expect rates to rise during the next 30 to 60 days, which is the usual length of time lock-ins are available.

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