mortgage payments — as well as other standard costs, such as closing costs, homeowner’s insurance, property taxes, and ongoing maintenance — and looking for homes that fall within your budget. Bankrate.com adds that “if you lock in a rate too soon and end up going wit h a diff erent type of loan, your rate lock might be void.” You could also lose out on a mortgage rate lock if your situation happens to change, including a sign ifi cant credit score sh ift or change in debt-to-income ratio, before closing and ultimate settlement. THE BOTTOM LINE In the end, when you’re shopping for a home loan, looking for a great deal, and then locking in that deal, is a good idea and general rule of thumb. Th e trick is to know when to lock in a rate, and to fin d out each lender’s rules and policies surrounding mortgage rate locks. Mortgage interest rates, and mortgage rate lock fees, can vary sign ifi cantly from day to day, and from lender to lender, so it’s best to take your time when researching and shopping. Further, in addition to shopping around, when you’ve found a lender, a low rate, and you’ve decided to lock it in, it’s imperative that you get that mortgage rate lock in writing. Don’t make any assumptions or take anything for granted. A quote or a promise or somebody’s word isn’t good enough; you need it in writing. “Rising rates mean rising pro fi ts for lenders,” says Lisa Smith of Investopedia, “so they have every incentive to increase the rate whenever possible.” HOW TO GAIN AN ADVANTAGE: Th e most important piece of advice to take away from all this 106
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