3 Major Questions for Your Mortgage Lender Amidst Cooling Interest Rates

Tuesday, 27 August 2024, 08:53

3 major mortgage interest rate questions to ask your lender now include inquiries about mortgage points, adjustable-rate mortgages, and rate lock duration. Knowing the right questions to ask can significantly improve your chances of securing a favorable mortgage deal during this changing landscape.
CBS News
3 Major Questions for Your Mortgage Lender Amidst Cooling Interest Rates

3 Major Questions for Your Mortgage Lender Amidst Cooling Interest Rates

As mortgage interest rates are cooling yet again, it's essential for potential homebuyers and those considering refinancing to ask the right questions. Here are three crucial inquiries to elevate your mortgage experience:

1. Does the Rate Listed Include Mortgage Points?

Mortgage interest rates fluctuate daily, and you might find an attractive listed rate from your lender. However, it often includes mortgage points, which are fees to lower the rate. Be sure to clarify whether the listed rate reflects this reduction and what the rate would be without it.

2. What Would an Adjustable-Rate Mortgage Look Like?

Given the current rates, exploring an adjustable-rate mortgage can be beneficial. Initially locking in a lower rate for a certain period can work in your favor. Ask your lender about the specifics of adjustable-rate options to see if they align with your financial goals.

3. How Long Will a Rate Lock Last?

Considering a rate lock might be wise with lower rates currently available. Understand the duration of the lock and inquire about options available should rates drop further. This ensures you won’t miss out on a better rate later.

The answers to these questions can offer valuable insights, helping you navigate today's mortgage landscape more effectively.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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