Why You Need Rate Lock on Mortgage Rates in Maine

If you are in situation whereby you have already looked through different Maine mortgage rates and have concluded on a particular one to use to get loan to finance your dreamed home and that by the time you are ready to take up the loan, the rate has gone up, you will be devastated a lot. What you should have done after you have concluded about the rate you want is to initiate a Mortgage rate lock.

The truth of the matter is that the rate of mortgage is not constant at all. The rate moves up and down every time. Since the rate will affect your income on a monthly basis, you will have to make sure you get the rate that is lowest and which you can afford to pay monthly and immediately put a rate lock. Know that a small marginal difference in percentage point can seriously affect your repaying up your loan.

Because Mortgage rates in Maine changes all the time, you need to understand rate-lock agreement and apply it. The rate-lock agreement ensures that the moment you apply for a loan and you are given a rate, which you have agreed to repay, that the market rate has moved up or down will not affect that rate. The rate-lock is advantageous when the interest rates increases as you will not be affected. But if the rate goes down, you will not have the opportunity to pay less if you have not applied another instrument called float down in your rate-lock agreement.

Click here know more about Maine Mortgage Calculator