How do I lock the interest rate after I buy a new house ??/?

Question

My sister and I are trying to buy a new KB home in Jax,FL. She has the question concern about how the interest rate do with the house.I think she wants to know how can we keep the same interest rate as long as we paid off the house.

Answer 1

Don't get a variable rate loan (also know as Boom Arm or adjustable rate mortgage).  Tell your mortgage broker that you only want a fixed rate mortgage.  If they tell you ANYTHING about getting an adjustable rate except for why they aren't going to sell you one, get up and walk out, you own nothing to them. I am assuming that you are new to this.  So don't get emotionally attached to anyone or anything and see it for what it is.

Answer 2

if I understand the question; there are

many types of loans but for all practical

purposes, there are 2--arms and

fixed rates.

if you are qualified and you ACCEPT

a fixed rate loan, [example, 5.5%], you will

pay that rate until the house is either;

sold, re-financed by you for whatever

reason, or foreclosed upon.

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Answer 3

You would choose a fixed rate program. You lock the rate prior to closing usually as soon as you have a property under contract and know when you will need to close.

Ask your lender to provide you with a copy of the rate lock confirmation so that you won't have any surprises at closing.

I hope this answers your question.

Good luck with your house hunting.

Answer 4

You " lock " the interest rate during the process of closing. ( that is when you actually buy the house ).  The mortgage company tells you what rate they will give you ( get a fixed rate - not adjustable - get as low a rate as possible ).  You may want to check with more than one mortgage company to be sure you get the best rate.