period, then the guaranteed rate that you “locked in” will expire; further, any deposit you paid could be forfeited to the lender. Finally, don’t assume that a mortgage rate lock somehow provides unlimited protection. While a mortgage rate lock protects you against increasing interest rates during inevitable shifts in the housing market, it will also prevent you from grabbing an ever- lower interest rate that comes along. Before you finalize your rate agreement, consider asking your lender if they would offer a mortgage rate lock “float down,” allowing you to exchange your current rate for a lower one. Important Note: Something else to keep in mind is that there are also potential tax programs and benefits available to homeowners who are downsizing. The tax programs and benefits will vary from state to state, and the types available will also depend on age brackets — though there are certainly options available for seniors. Do some research and consult with your agent for more information about your particular area of the country to see what’s out there that could potentially benefit your specific situation.
Key Takeaway:
Home loan shopping can be tricky, complicated, and time- consuming, but it’s a necessary component of the overall home- buying process, because you need to ensure you not only search for a home loan, but that you find a great deal — and lock it in at the right time — that will be affordable and reasonable for you and your situation. Make sure you follow the above steps. Remember that mortgage loan rates can change, sometimes quickly, so it’s important to know when to lock in a great rate. Consult your agent for help along the way; they are an invaluable resource when it comes to home loan shopping.
151
Powered by FlippingBook