Now Is The Time To Lock Your Rate - LoanLove.com Explains Why

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SAN DIEGO, July 6, 2013 /PRNewswire-iReach/ -- LoanLove.com has a mission to help consumers and borrowers alike in obtaining the latest information on mortgage lending trends, the real-estate market and the U.S. financial landscape for the purpose of helping them obtain a home loan they love. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals. To fulfill this goal LoanLove.com is continually updating their website with new articles and guides. LoanLove.com continues to help homeowners to understand the real estate market with their new article explaining why "Now is the time to lock your rate!"

The article explains that a mortgage rate lock enables borrowers to lock in the original rate that they were quoted when they first applied a loan from their lender. Not all lenders allow borrowers to lock in their rates, but those who do will usually allow for a rate lock at the beginning, when the loan is filed, or during the application process. Most borrowers prefer to lock in their rates when they first submit the loan, since this will protect them from potential rate or point increases that may occur during the home loan application process. The Loan Love article explains:

"If you've been mortgage shopping, you've probably seen a lot of interest rates – some lower than others. You've probably also been following news reports about the recent increase in rates, and even though rates are still near record lows, it's pretty obvious that now is the time to take out a new mortgage or refinance an existing one. Of course, once you do decide to apply for a mortgage, it takes time – usually a few weeks – before the mortgage will be finalized. At the end of that time, you want to be sure you end up getting the same low rate that was in effect when you submitted your application. The way to do that is by locking in your rate, and maybe even your points."

That said, Loan Love also points out: "Just as a lock protects you from potential rate increases while your loan is being approved, it can also mean you are unable to take advantage of decreases in the interest rates that may occur while your loan is being processed. In a market where you aren't sure whether rates will fall or not, you might choose to float your rate. That means that although you lock in the rate when you make an application, the lender will adjust the rate to any lower interest rate that occurs while your application is being processed. Of course, if rates rise, in most cases the rate will "float" upward with them. Since points also typically fall with interest rates, some lenders also allow points to rise and fall during the application process."

These tips can help borrowers to benefit from the best loan rates even if rates increase during their loan application processing period. To get more answer to the question "Should I lock my mortgage rate?" please visit LoanLove.com for the full article.

Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, contact@loanlove.com

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