One of the top priorities for many homeowners is saving money on their monthly expenses, whether it is a power bill or their mortgage. Many people choose to save money on their mortgage by accepting a lock on their current mortgage rate, which protects them from spikes in interest rates in the future. This strategy is great for most homeowners, but there are exceptions when you should avoid the locking of your mortgage rates. In some cases, locking in a mortgage rate can cost you more money in the long run. The following are a few of the instances where you should reject mortgage rate locks.
Not Tied Down
One of the main reasons to avoid locking in a mortgage rate is not having a locked in mortgage rate on your existing home loan, which allows you to play the field and find the rate that you want without having to completely refinance your home. The best thing for you to do in this situation is play the waiting game and watch out for record low interest rates before you decide on mortgage rate locks. This puts the power in your hands and allows you to wait until the opportune time to lower your monthly mortgage payment.
Plans on Selling
If you have a floating mortgage and are considering the sale of your existing home, then you may want to wait on mortgage rate locks. This will allow you to wait the mortgage rates out and get the absolute lowest rate possible, which means you will be able to make more money on the sale of your existing home. By accepting mortgage rate locks, you will be putting the power back in the hands of the bank, which is not going to beneficial to you when you sell the home, so be careful what rates you lock yourself into.
If you are in need of refinancing your existing home loan, then look no further than Investors Home Mortgage. They have the knowledge and experience needed to get you the absolute best rate on your mortgage.