A very common question for any consumer that might be considering refinancing an existing home loan or purchasing a new home is "Should I lock my mortgage rate?".

This is a very important question and the answer can seemingly change from day to day, depending on what is going on in the markets.

Your specific scenario in terms of your time-frame and specific needs can also play a role in answering this question. Sometimes the answer is rooted in the likelihood of rates going up vs the likelihood of mortgage rates going down. To answer the question, let's take a look at the bigger picture.

Pros: Locking Your Mortgage Rate Now
For many weeks and months mortgage rates have been near or at all time historical lows. We've also had many new lows set as is the case in the past couple of weeks. These new lows have been all time historic lows, but by a small margin until the last few weeks, where we have seen some significant downward movement.

Since we traditionally see mortgage rates move up faster than they move down, we've got a whole lot of upside potential available right now should the right news come out regarding the health the US or World Economy, specifically Europe. This means that we some would argue that there is a lot more upside potential if mortgage rates move as opposed to downside potential.

Locking in your mortgage rate now may be a save move, but by the time you've read this, it is likely that the market has changed. To get an up to the minute answer on locking your mortgage rate, simply give us a call and we can give you the most current market summary and advice on whether locking your rate makes sense right now.

Cons: Locking Your Mortgage Rate Now
If you choose to lock your rate near all time historic lows, you risk the chance of possibly missing out on yet lower rates that might come in the future. Ultimately the question is one of risk vs reward. In the current environment, you will likely find many more mortgage professionals advising that holding out on locking your rate presents a very low risk to reward ratio.

The best way to know if the current market has changed to favor holding out on your lock is to call us directly. In addition to giving you a clear idea on whether or not holding off on your lock makes the most sense, we can answer any questions you might have about which programs make the most sense for your needs and a current mortgage rate quote.