Should I purchase a rate lock?

1 Reply

Hello everyone. I need advice on rate locks. I have a suspicion that my lender is trying to get me to spend more money. I understand the purpose of rate locks but I don’t feel they’re always necessary. I’m due to close on my property on May 30th. I’ve already been approved. All of my documentation has been accepted. I’m just waiting for the appraisal. My lender is charging me $2400 for the rate lock. I feel that’s a bit costly. My interest rate is already high due to my recovering credit so what am I protecting? I know the market rate changes daily but my closing is coming up soon. Should I spend this amount of money on a rate lock or not?

I wouldn't , especially not at that price.  Rates will fluctuate but fed didn't raise rates last time they met and they're not meeting until June I believe.  The 10 yr treasury yield which most closely tracks 15 yr mortgage rates and 30 yr increases has moved up a bit but I still think the odds are more in your favor that there won't be a HUGE move by May 30th.   Obviously I can't predict the future so good luck to you!