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When is the Best Time to Float or Lock Your Mortgage Rate?

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When is the Best Time to Float or Lock Your Mortgage Rate?

Buying a home is an exciting milestone in anyone’s life. Whether you are a first-time homebuyer or have purchased several properties; nothing beats the thrill of owning a new home. While looking at homes and finding the perfect one is definitely fun – it quickly turns to business as soon as you start approaching the home buying process including financing options. There are lots of things to learn about the home buying process and many options to consider for financing.

The fact of the matter is that once you find the home of your dreams, you must have the funds to purchase it. Getting the right financing is the key to ensuring you can afford the home you want to buy.

Securing a Good Interest Rate is Crucial for Your Home Purchase

The most important thing in the home buying process, (after you find your dream home, of course) is getting a mortgage with a good interest rate to complete the purchase. Since the interest rate determines exactly how much money you will pay to borrow the funds for your home (mortgage), savvy homebuyers know they need to explore their financing options to find the lowest interest rate possible.

When it comes to securing the best mortgage interest rate for your home loan, there are two financing options to consider – the mortgage rate lock and the mortgage rate float down. Here’s the scoop on both of them:

Mortgage Rate Lock

Since interest rates fluctuate on a daily basis based on the stock market, world events, the Federal Reserve, and more; locking in an interest rate while it is low is a great move. Rates can be locked in for a period of typically 30 and 90 days up to five days before closing. This choice is not without risk, though, as the rate does fluctuate, and once you are locked in, the rate could still go up or down. If the rate does happen to go down while you are locked in, this is when the float down method comes into play, which is option number two. The best time to utilize the mortgage rate lock option is when mortgage rates are fluctuating in a volatile market and are expected to increase in the near future.

Float-Down Mortgage Rate

The float-down mortgage rate option gives you the ability to lock a low interest rate, with the potential to close at the lowest rate if they happen to drop during a specified time period. Mortgage lenders will often offer this float down option with a provision that allows you to get a lower interest rate, should the rates fall lower than your rate lock, however, even if the rates don’t fall, you are still going to pay for the higher fees for points to get the lower interest rate.

When trying to secure the best and lowest mortgage interest rate for your home, remember that if your rate is a bit higher than you had hoped, you are not locked into that interest rate forever. When rates drop in the future, refinancing is a great option you can and should pursue. Once you recognize that there has been a significant reduction in mortgage interest rates, refinancing with a reputable mortgage company is definitely feasible.

Mid-America Mortgage Can Help You Get the Best Mortgage Interest Rate

Mid-America Mortgage is your advocate, here to help you get the best possible loan option and rate for your specific situation. When it’s time to buy, we are here to help you explore your financing options and so that you can secure the lowest interest rate possible for your home loan. We invite you to contact us today to begin your journey as a homeowner!

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"They really explained the process to us very well and made us feel very comfortable, specifically Jeanie Byland. I have never asked a question that I felt dumb about. They really wanted to educate us and have been fantastic. The interest rates changed one day and they called me to say, ‘Hey we might ought to look into refinancing your loan’. I really felt like they had our best interest at heart."

Steve

"My wife and I have moved around quite a bit with my job so we have been through the process before, but we have never had anybody help us as much as Michelle West Mid America Mortgage Services, Inc did. We needed a loan for a new construction home and they were able to help us out with all of our needs and make us feel comfortable with what we were doing moving forward. They did a good job of walking us through the paperwork to make sure that we were pre-approved for a certain amount."

Jason

"I have had mortgages since 2004 in Columbia and have gone through a couple of banks, but over the last several years, the last couple of houses have been with Mid America Mortgage Services, Inc. Michelle has told us many times, 'I am not going to put you in a situation I am not comfortable with you being in, regardless of what it means for our company'.

Heidi always has a smile on her face and when you walk through the door, they recognize you and say “Hi”. I definitely recommend anyone who is in the home buying, purchasing, refinancing, upgrading business to go to Mid America Mortgage Services, Inc, ask for Michelle because they are going to be the best person you can work with."

John

"I’m a very loyal customer at Mid America Mortgage Services, Inc. I have an addiction to building houses and designing them, and they are always right there with me every step of the way helping me get the best loan product and the best rates whenever I am ready to build. They make sure you don’t get a loan that you can’t afford. The whole process was very smooth. I would recommend Mid America Mortgage Services, Inc to anyone because they are always there to teach you, help you, and make it easy for you every step of the way."

Kate

"My family owns Tiger Ice Company. My experience with Ralph at Mid America started with Tiger Ice because we needed to expand our facility. When we went in to talk to Ralph at Mid America, he pretty much was straight up with us and told us we needed to go back to the drawing board. We came back with new numbers and a new plan, and we built the facility and everything was fine. Our dream of that would not have been possible at all without Mid America Mortgage Services, Inc and Ralph. They don’t tell you what you want to hear, they tell you the truth and that's what we weren't getting from other banks."

Andy

"When we were 18 and 19 years old no one wanted to help us get started. But Michelle took us under her wing 6 years ago next month. There is a lot of people out there that could of taken advantage of us many of times because we had no idea what was going on. For Michelle to stand beside us and walk us through, and not let us get into something that could get us in a lot of trouble means the world. We thank Michelle and we are extremely blessed to be able to work with her and her team. I have never even thought about talking to another lender and will always be loyal to Mid America Mortgage Services, Inc."

Cody and Morgan

Michelle, I want to thank you for all of your efforts on the loan. I never knew how much information the needed! I appreciate your personal nature and ease of working together. Thank you for making this happen! :)

Amy

Selling our home of 17 years and building a new home was a very emotional time for our family. We were ready for the next adventure in our lives but knew there were numerous steps involved. The search for a mortgage officer was simple, Michelle was our choice. Her guidance and knowledge made the process as easy as possible. When we had questions, she was always there to give us an answer and discuss our options. The employees of Mid America Mortgage Services, Inc like Michelle will keep us returning for our mortgage needs.

Chad and Julee

"One of the main things that I loved about Michelle was she was so organized. She would meet us at any location she needed to, and to be honest she had the absolute lowest interest rate. They were always very transparent with fees so there were no surprises. Michelle was always super easy and we would always run in talk to her even it was for a few minutes. The best thing was the process was very, very smooth."

Chris and Jamie

"I knew Jeanie Byland for a long time. She made the process so easy. One of the things I probably appreciated the most was that she didn't want to spoil the excitement of closing on a new house by showing up on closing day finding out that we owe a lot more than we thought. They were upfront with that information right from the get-go, and that’s because it’s just like they say, ‘They wouldn’t put you in a loan that they would be comfortable taking themselves.’”

Jamie


Phone: (573) 875-1100
200 E Walnut St, Columbia, MO 65203