Why Locking in Your Mortgage Rate Early Matters

Timing is everything in the world of mortgages, especially when it comes to renewals. If your clients’ mortgage renewal is coming up, securing their rate 4-5 months in advance can make a significant difference. It’s not just about locking in a number; it’s about saving money, reducing stress, and staying ahead of market fluctuations. Here’s why taking action early is a smart move for anyone with a mortgage renewal on the horizon.

1. Protect Against Rising Rates

Interest rates can change quickly and unpredictably. When your clients lock in their rate early, they shield themselves from potential increases. Even a small rate hike can have a significant impact on their monthly payments and overall mortgage cost. By acting early, they can breathe easy knowing they’ve secured a favorable rate, no matter what the market does next.

2. Benefit from Falling Rates

Here’s the win-win: most lenders offer flexibility during the rate hold period. If rates drop after locking in, many lenders allow borrowers to switch to the lower rate. This means your clients are protected against increases but can still benefit from decreases. It’s like having a safety net and a bonus rolled into one.

3. Save Money

The financial impact of locking in early can be substantial. In a rising rate environment, even a small rate difference can save thousands over the life of the mortgage. For example, securing a rate today instead of waiting could mean $5,000 or more in savings, depending on the loan size and rate changes. It’s one of those simple steps that can have long-term benefits.

4. Take Advantage of Extended Rate Hold Periods

Many lenders offer rate holds ranging from 30 to 150 days, and some even allow extensions for a small fee. Locking in early guarantees that the rate won’t change during this period, giving your clients flexibility and security as they approach their renewal date. It’s all about creating a buffer against uncertainty.

5. Avoid the Risk of Waiting Too Long

Waiting until the last minute to lock in a rate is a gamble. If rates rise closer to the renewal date, your clients could be stuck paying more for years to come. Acting early eliminates this risk and ensures they secure the best deal possible, avoiding any unpleasant surprises.

6. How to Lock in a Rate

The process is straightforward and free. By getting a mortgage pre-approval, your clients can secure a rate hold for up to 150 days. This pre-approval locks in the rate for the agreed-upon term, regardless of market changes. As a professional monitoring over 80 lenders, I ensure they get the most competitive rate available, tailored to their unique needs.

7. Start Early for Peace of Mind

I always recommend reaching out 4-5 months before a mortgage renewal. This gives us plenty of time to explore options, compare rates, and lock in the best deal. Starting early means avoiding the stress of last-minute decisions and ensures that your clients are prepared for whatever the market throws their way.

Locking in a mortgage rate early is a simple yet powerful step that protects against rate fluctuations, saves money, and provides peace of mind. It’s about being proactive and making informed decisions to ensure your clients get the best possible outcome.

Whether it’s securing a rate or navigating renewal options, I’m here to guide your clients every step of the way. Let’s start the conversation early and set them up for success. Reach out today to discuss how we can lock in their rate and protect their financial future.