How do I know if it is best to lock in my interest rate or to let it float?

Mortgage interest rate movements are as hard to predict as the stock market and no one can really know for certain whether they will go up or down.

If you have a hunch rates are on an upward trend then you want to consider locking the rate as soon as you are able. Before you decide to lock, make sure your loan can close within the lock in period. It will not do any good to lock your rate if you are not able to close during the rate lock period. If you are purchasing a home, review your contract for the estimated closing date to help you choose the right rate lock period. If you are refinancing, in most cases, your loan could close within 30 days. However, if you have any secondary financing on the home which will not be paid off, allow some extra time since we will need to contact the lender to get their permission.

If you think rates might drop while your loan is being processed, take a risk and let your rate "float" instead of locking. After you apply, you may lock in during the business day by contacting your originator or the processing area at 800-672-2274.