United Home Loans FAQs

Q: Should I lock my rate?

Locking your interest rate means your lender guarantees the rate on your loan even if market rates change before closing.  Most lenders will allow you to lock your rate for 30 to 60 days, with the option to extend the rate-lock period for a fee.  So how do you know whether to lock your interest rate?  It depends on whether you expect rates to rise or fall before you close on your home.  No one knows for sure which direction rates will go at a given time, so it's a difficult to make a reliable prediction.  It helps to keep track of announcements from the Federal Reserve Board, whose monetary policies have an effect on mortgage rates, and to talk to you financial advisor about what may happen in the near term. 

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