Lock or Float?

Deciding whether to lock or float your mortgage rate depends on your personal financial situation and risk tolerance. Here are some things to consider:

• Locking your rate: This means you agree to the interest rate offered by your lender for a set period of time, typically 30 to 60 days. If interest rates go up during that time, your rate is protected. However, if rates go down, you are stuck with the higher rate. Locking is generally a good idea if you want to ensure a predictable monthly payment and can afford the rate being offered.

• Floating your rate: This means you don't lock in your interest rate and instead wait to see if rates go down before committing. If rates do go down, you can secure a lower rate, which will lower your monthly payment. However, if rates go up, your monthly payment will be higher. Floating can be a good option if you are comfortable with some uncertainty and have a higher risk tolerance.

Ultimately, the decision to lock or float your mortgage rate depends on your individual financial goals and circumstances. It may be helpful to discuss your options with a trusted mortgage professional such as myself who can provide guidance based on your unique situation.