We understand how frustrating it can be to search for a home in Austin. Half the battle is learning the key terms and what they mean in regards to Texas real estate. So each week we bring you Key Term Tuesday – our way of helping you decode the industry jargon that keeps you from owning your home search.
What is a Rate Lock?
Interest rates are constantly moving, going both higher and lower. This constant movement can be unnerving for buyers who wish to protect themselves against escalating rates. One way to do so is by freezing the interest rate with a rate lock.
The term rate lock is used to describe situation where the lender guarantees or “locks” a particular interest rate for a given period of time, generally 30 days.
If the market rate increases, your interest rate holds firm and conversely if the market rate declines, your rate holds firm as well. We always advise our clients ask their mortgage broker to explain the pros and cons about rate locks before making a decision.
Looking for a Real Estate Expert?
Our team has a combined 55+ years of experience helping home buyers understand the residential real estate market. Check out our approach to Buying a Home in Austin to learn more about our team and how we work. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.