Should I Lock My Mortgage Rate In Today?
Should I lock my mortgage rate in today? It’s a difficult question, and unfortunately there is no simple answer. Interest rates have been going up. It happened multiple times last year and has happened a few times this year as well. Most economists think mortgage rates are going to be raised at least two more times this year, and there is a very high likelihood that they could actually be raised four more times.
This is making people wonder: Should I lock in my mortgage rate today or should I wait?
I’m going to just jump right to the answer.
If a family member, friend, or loan officer here at Low VA Rates asks me, “do I play the market and wait? Do I take a risk?” I always say no to risking and gambling when it comes to your family and your home.
So the simple answer to whether you should lock rates in now, in my book, is yes.
Rising Mortgage Rates
Here’s why. I wish I had a crystal ball and could tell the future, but I don’t. We don’t know what’s going to happen with interest rates. But the fact of the matter is that rates are in an upward trend.
So there is zero reason not to lock in now.
If a loan officer or someone else is telling you to wait, they’re holding onto the hope that rates will come back down. I’m a hopeful person—I believe we should all have hope—but we shouldn’t let that override our logic when it comes to finances.
We’re not in Las Vegas. We’re not at a roulette table. And we certainly don’t want to gamble on our future.
A Good Time to Buy
That may all sound pessimistic, but it’s not. In my opinion, there’s actually never been a better time to buy a home.
Home prices have stabilized and have even continued to increase.
And interest rates, even though they’re going up, are actually still in the basement, when you look at it historically. We’re at 3.75-4.75% right now. When I bought my first property back in 2001, I got a “killer rate” of 8.25%.
Think about it. Even though rates are rising, we’re still at extremely low rates (for now). I don’t know if we’ll get back up to 8.25%—I don’t have a crystal ball—but right now, they’re really low.
So if you’re looking to purchase or refinance, you really should lock your rate in today. There’s not a better time to do it.
Is It a Good Time to Refinance?
Let’s talk about why you should refinance now instead of waiting.
You already know my answer to whether or not you should lock in your loan (which is of course yes). But if you’re waiting to refinance, there has also never been a better time to refinance and pull the equity out of your house.
Well, right now, there is a shortage of new homes. There are more buyers than there are homes available. This has caused property values to go up. Today, property values are higher nationwide than they were before the housing collapse.
And consider this: we have trillions of dollars of debt in this country, yet our home equity is at an all-time high. That means that people aren’t using their equity nearly as much as they could be!
Get rid of your debt by accessing the equity in your home. That equity is absolutely worthless to you unless you do something with it—like selling your house and pocketing the cash or refinancing to pull that equity out. Otherwise, it does nothing for you.
How Do You Lock in Your Mortgage Rate Today?
Here at Low VA Rates, we are expert in all things mortgage. We strive to get each client the right loan for their situation—and at the best rates possible.
To lock in today’s rates, get started online or call us at 866-569-8272 to speak to one of our experienced professionals.
And please Remember Everyone Deployed and have a great week!