Should You Lock Your Mortgage Rate or Let it Ride?
You have done it you finally found the home of your dreams now the task is finding the lowest possible Chicago mortgage rate. This will take some education on your part or teaming up with a mortgage broker who is familiar with the Chicago mortgage markets and what they will be doing over the next month or two while you are waiting to close on your loan. You can lock your mortgage loan at a particular rate 30, 45 or even up to 60 days prior to closing on your loan. This can protect you from the possibility of rates going higher in the interim. The reverse of this however is the fact that if rates drop during the period of time you will not be able to take advantage of the lower rate. This is when it is prudent to have a mortgage broker with a good feel for which way the markets are moving and can guide you and give you advice based on his feel for the market.
If you want to do it yourself however it is not very difficult to keep up with the markets on a daily or even hourly basis by going online and subscribing to reports for mortgage rates. The Internet is also a great place to comparison-shop mortgage rates between various lenders. By performing due diligence you can save yourself thousands of dollars over the life of your mortgage. A small difference of a quarter percent or even an eighth of a percent difference in your Chicago mortgage rate can make a significant change in the amount you’ll pay over the life of the mortgage.