Best Day to Lock-in a Mortgage Rate (2024)

FAQs

Best Day to Lock-in a Mortgage Rate? ›

Monday is the best day to lock-in mortgage rates; Wednesdays are risky. Mortgage rates are in constant flux, even changing multiple times a day. This volatility can make it challenging to know when to lock in your rate.

As long as you close before your rate lock expires, any increase in rates won't affect you. The ideal time to lock your mortgage rate is when interest rates are at their lowest, but this is hard to predict — even for the experts. It's worth noting that interest rates could decrease during your lock period.

You can lock in your rate from the moment you receive initial loan approval to 5 days before closing. Some lenders may even lock your rate when they send the Loan Estimate. However, your rate lock has an expiration date.

When you lock the interest rate, you're protected from rate increases due to market conditions. If rates go down prior to your loan closing and you want to take advantage of a lower rate, you may be able to pay a fee and relock at the lower interest rate. This is called “repricing” your loan.

Your lender may offer multiple rate lock periods, giving you the flexibility to choose the term you want. However, you may not be able to negotiate the fee, and once you've entered a lock-in period, you typically can't change the terms except to extend it.

Monday is the best day to lock-in mortgage rates; Wednesdays are risky. Mortgage rates are in constant flux, even changing multiple times a day.

Missed opportunities: If market rates drop after you've locked in your rate, you miss out on the lower rates. Unfortunately, you'll pay more in interest over the loan term. Fees and costs: Some lenders charge for a rate lock, particularly if you want to do so for an extended period.

The best day of the week to lock in a mortgage rate is Monday. This is because the history of mortgage rates shows it's the least volatile day of the week when it comes to the mortgage market. Potential homebuyers will want to avoid volatility.

How often do interest rates change? Mortgage rates can change daily, sometimes multiple times a day. They're difficult to predict, though they're often influenced by economic changes, world events, and the Federal Reserve (also known as the Fed in the media).

Can you change mortgage lenders after locking your rate? A rate lock doesn't lock you into the deal. If you find better terms and lower closing costs from another lender, you can opt to go with that lender after your rate lock with the first lender begins.

Is it better to lock or float mortgage rates? ›

If you think rates are likely to stay the same or increase, you might be better off locking. But again, no one ever really knows for certain what the rates will do, so you must be willing to accept the risk if you choose to float. If uncertainty keeps you up at night, locking is definitely the better option.

The charge for a rate lock could range from 0.25% to 0.5% of the amount of your mortgage. For example, on a mortgage loan of $450,000, a 0.25% rate lock deposit would be $1,125.

Answer: You are free to withdraw your application and break your lock at any time.

If it is due to the seller, then many times, you can negotiate for the seller to pay for any extension — or other costs — incurred by the delay." Even if it's not another party's fault, your lender may still cover the extension — especially if it's only a short one you're in need of.

Yes, you can negotiate your home loan interest rate. Just like when it comes to negotiating your salary, if you don't ask for something better, you likely won't get it. Most lenders aren't going to just spontaneously offer you a better rate – you're going to have to ask for it.

If you're leaning towards locking in your variable rate to a fixed rate, a shorter-term fixed rate is suggested. Many banks may only allow for a 5 year fixed rate lock in and borrowers should see the risk that rates may fall in 1-2 years.

The benefit of a mortgage rate lock is that it protects you from market fluctuations in interest rates. For example, if your lender locks in your rate at 6.68 percent for 45 days and rates jump toward 7 percent within that period, you'll still get your loan at the lesser rate. It's up to you to seek the rate lock.

While McBride had initially expected mortgage rates to fall to 5.75 percent by late 2024, the economic reality means they're likely to hover in the range of 6.25 percent to 6.4 percent by the end of the year.

Some lenders may allow you to lock in the rate once you're preapproved, while others might require that the seller first accepts your offer. Rate lock policies vary by lender, but usually, a loan advisor will offer you one once your application is approved and ready to go to underwriting.