When it is reported that rates may go
lower loan shoppers should prepare to refinancing home loans or
establish new home loan financing by shopping for rates.
After filling out loan rates request applications consumers ready
themselves to lock-in rates at new lows that week.
Once you start receiving competitive rate quotes ask the lender for
details on the following programs rate lock programs
Free 60 day lock-in programs
Lock-and-shop programs.
Free float-downs
Rate drop re-lock rates drop.
Four factors figure into a rate lock program:
- Loan program.
- Interest rate.
- Points.
- Length of the lock.
Length of Lock-In
30 to 60 day lock-ins can help with a
long loan processing situation. If a loan takes 45 days to close a 60
lock-in prevent expiration of a low rate. Keep in mind however that long
length lock-ins can be costly. Some lenders offering a free or no fee
rate lock option. Otherwise, if you need a longer lock and do not want
to pay the higher points, you may instead pay a higher rate.
Rate Re-Lock
If a lock expires, a lender may allow a re-lock at a higher
rate than the current rate even if interest rates are lower than the
originally rate locked in rate.
Free Float-Downs
If the rates drop while your loan is in process a lenders may offer
the free float-down program allowing you to get the better rate.
What are your options if the rates drop
after you lock?
Few lenders allow for a rate change once
rates have been locked. It's best to settle for the rate locked in the
agreements and consider refinancing at a later date when rates are
lower.
Lock-and-shop programs.
Most lenders will let you lock in an
interest rate only on a specific property. If you are shopping for a
house, some lenders offer a lock-and-shop program that lets you lock in
a rate before you find the house. This program is very useful when rates
are rising. To begin the process of rate shopping and lock-in this weeks
low rates start at the 
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