What is the best lock-in strategy?
The best lock-in strategy depends on your particular needs and circumstances, as well as market timing. One point is very important here. All other things being equal, the longer the lock period, the more the loan will cost you. Why? You are obviously asking the lender to assume the risk of a market change. If the lender guarantees you a rate for 15 days, the market will not likely change much in that 15 days and to some degree it is predictable. But a 30-day lock means the lender is stretching his exposure out further, and into a time where rates are less predictable. One nationwide lender advertises a six-month rate lock. Do you pay for this? You bet you do! So the first rule of thumb is that, unless rates are fairly certain to rise before you can get your loan closed, it is best to wait until you are nearly ready to close and then lock, as you will get the most favorable price. The market fluctuates daily. When you see a lender warn that “rates may change without notice,” they reall
