MMMM….Mortgage Cake

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When you are looking to buy a home, one primary consideration is, “What interest rate will I pay for my mortgage?”  I’ll borrow the saying “have your cake and eat it too” in order to explain.

Truth is mortgage interest rates fluctuate daily, and can change multiple times in a single day.  So when do you lock the rate? Now you’re faced with a dilemma and must ask yourself:

  • “If I don’t lock and rates go up, my monthly payment will be higher.”
  • “If I lock today and rates go down, I will miss the chance to have a lower monthly payment.”

This is one case in life – when working with the right lender – you can actually have your cake and eat it too!  Get out your fork and napkin while I explain.

The base layer of your cake is a quick description of a rate lock.  You lock the interest rate for the period of time you need to close on your home.  Options include 15, 30, 45 days, etc.

The next layer of your rate lock cake is the fact that when you lock, your interest rate will not increase even if market rates rise significantly before you close.  You are locked in and won’t pay more as long as you close within your lock window.  You’ve just addressed the first horn of your dilemma.

Now the sweet icing on your rate lock cake…some lenders, like the ones we at Dunwoody Mortgage represent, offer interest rate “float down” options.  If rates improve before you close, you can have the opportunity to “float down” to a lower mortgage interest rate at no cost to you – dilemma solved!!

Financing your new home purchase with Dunwoody Mortgage can protect you against rate increases and decreases. Your dilemma is solved as you don’t have to worry about when to lock OR what if rates improve!  If you are looking to buy a home in the state of Georgia, and want this kind of interest rate security, then give me a call.  I would love you help you have your cake and eat it too.

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