4.25% 30 Year Fixed Rate
Loan Amount
Loan Type

Program Rate APR
30-Yr fixed 4.750 % 0.7 to 1
15-Yr fixed 3.750 % 0.7 to 1
5/1 ARM 3.125 % 0.7 to 1
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Find a Home or Lock a Rate?

When people lock a 30 year mortgage rate, they are obtaining financing for the loan at a set interest rate, a particular term and amount of money. For those future homeowners who are seeking to lock their mortgages this is convenient, because they set these terms before they have found the house they want to purchase. They can lock a 30 year mortgage rate for a period of 30 days, generally, but it can be for a lesser amount of time. A lock can also be contracted for longer than 30 days, but this will raise the price of this loan.

After clients lock a 30 year mortgage rate, the money to purchase the house has been secured by the mortgage company. This fact does not obligate the future homeowner to take the loan, but they will need to make sure that they will have their agreements in writing. Without written confirmation, any verbal agreement that may have been made will be meaningless when it comes time to purchase the house.

People will want to lock in current mortgage rates when it appears that interest rates are rising. After they have locked their interest rates and the interest rates rise in 30 days, they will not be forced to accept the higher interest rate. As of June of 2011, financial experts have noted that interest rates for 30-year mortgages have begun to rise and they predict that they will continue to do so making now a good time to lock in a rate.

The possibility still exists that current mortgage rates can go down. In this case, the future homeowners would like to change the terms of their contracts for the lower rate. This action can cost lenders a lot of money, so they, generally, do not opt to change terms unless the interest rate has fallen by at least 3/8 of a percent. At this time, lending institutions are experiencing a lot of competition with each other; for this reason, they may be willing to switch to the lower interest rate to keep from losing a client.

Securing a loan before finding a house lets future homeowners lock in the current interest rates. In the event that they cannot find a house and have their offers accepted within the 30 days, they have the option of extending the length of the contract. But with a lock, they know they have been approved for a mortgage and they know what they can afford before they ever begin their search.