FAQ

A mortgage is a loan that is used to purchase a home or other property. The loan is secured by the property, and the borrower makes monthly payments to the lender over a set period of time, typically 15 or 30 years.

The choice between a variable rate and a fixed rate mortgage depends on individual circumstances and preferences. While a variable rate may offer potential savings during periods of low interest rates, a fixed rate provides stability and protection against potential rate increases.

To lock your mortgage rate, you typically need to work closely with your lender or mortgage broker. Once you have identified a favorable rate, you can request to “lock in” that rate, which involves signing an agreement with the lender to guarantee that particular interest rate for a specified period of time, typically ranging from 30 to 60 days.

A mortgage rate hold, also known as a rate lock or rate commitment, is a lender’s agreement to hold a specific interest rate for a borrower for a predetermined period of time, typically ranging from 30 to 120 days. During this period, the borrower is protected from potential rate increases, allowing them to secure the agreed-upon rate even if market rates fluctuate. A mortgage rate hold provides borrowers with peace of mind and allows them to plan their finances based on the locked rate, ensuring stability during the home buying or refinancing process.

Mortgage rates can change frequently and are influenced by various factors such as economic conditions, government policies, inflation, and market trends. While rates can change daily, it’s more common for mortgage rates to fluctuate over the course of a week or month. It’s important to stay informed and work closely with lenders or mortgage professionals to monitor rate movements and make informed decisions regarding timing your mortgage application or locking in a rate.