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What are the advantages and disadvantages to locking in a percentage rate?

April 26, 2017advantages disadvantages locking PERCENTAGE rate

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What are the advantages and disadvantages to locking in a percentage rate?

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If the interest rates in the marketplace go up while you are waiting for your loan to be approved, locking in a rate can ensure that you pay only the current interest rate instead of the new, higher one. The disadvantage is that if interest rates go down, you will have to pay today’s rate for the loan.