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The risk of locking the interest rate is that some shady lenders let lock periods expire, if interest rates rise under the pretense that the borrower could not process the paperwork in time and the client may also incur loss if interest rates are lowered than the locked rate.
What happens when you lock an interest rate?
If your interest rate is locked, as long as you close within the allotted time frame and make no modifications to your application, your rate won't change from the time you receive the rate lock and closing.
When you lock your interest rate, it will remain the same during the duration of the rate lock, regardless of shifting market conditions. If there are adjustments made before your loan closes, your final interest rate can be greater or lower than what you were first offered. When buying a property, a mortgage rate lock can help eliminate financial uncertainties.
To learn more about locking the interest rate, visit:
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