What if the rates drop after Ive locked my rate?
Most lenders will not budge unless the rates drop substantially (3/8 percent or more), because it is expensive for them to lock in interest rates. If lenders let borrowers improve their rate every time the rates improved, they would spend a lot of time relocking interest rates. Also they would have to build this option into their rates and borrowers would wind up paying a higher rate. Most lenders will let you lock in an interest rate only on a specific property. If you are shopping for a home, some lenders offer a lock-and-shop program that lets you lock in a rate before you find the home. This program is very useful when rates are rising.
