The Pros and Cons of Mortgage Rate Locks

If you’re just jumping into the game of home purchasing, you are likely considering all of your loan options and may even have heard the term mortgage rate lock. For those who don’t like to gamble, a mortgage rate lock can offer a bit of reassurance, but there are also some downsides to this type of protection. Before signing off on this, here are the details on rate locks so you can make an informed decision.

What Is A Rate Lock?

For many people who are buying a home in such a tumultuous market, the idea of interest rates can make the heart race a little faster, but this is the purpose of rate locks which offer consistency in a market in flux.

Instead of having to deal with day-to-day fluctuations of the rate which increases or decreases what you owe a rate lock is a lender promise that you will be held to a specific rate or your rate will not rise above a certain number.

Easy Balancing Of The Budget

The easy thing about utilizing the rate lock, especially for a buyer who is less familiar with the market, is that it will enable you to instantly determine your monthly payments based on that rate. Instead of having to pay more per month, you’ll be able to estimate exactly what your payment will be and it won’t rise above the limit you’ve set for yourself. While daily fluctuations can be a drag, a mortgage lock takes the guesswork out of the day-to-day.

The Added Cost Of Security

It might seem like a rate lock is an option that everyone would utilize, given the stability, but lenders charge for this type of offer because of the risk factor. While lenders can certainly stand to gain if your rate lock is higher than the interest rates, in the event that they rise beyond this point, they will end up losing money. So, while a 30-day rate lock may not end up costing you, this type of lock stretched over a longer period may actually end up costing you more than fluctuating rates.

If you’re not familiar with the world of investing and interest rates, a mortgage rate lock can sound like a great idea; however, there are downsides to this offer and they’re worth considering before getting locked in. If you are currently on the hunt for a home, give me a call for more information – J.P. Cook – 602-320-4253.

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5245 N Grand Canyon Drive Eloy, AZ 85131

$459,000

2 Beds

2 Baths

1,700 SqFt

Status Active

MLS # 6659456

Property Type Single Family Residence

Price Type --

PARTIALLY FURNISHED MONTECITO MODEL on PREMIUM homesite & OWNED SOLAR! 22 solar panels & sellers have not had an electric bill, only credits $$$. There is a beautiful pocket park adjacent to the home with walking paths & benches. Beautiful 2 bedroom, 2 bath home, Den + a golf cart garage w/4 ft ext. Bay windows in Dining, Master & Guest room! Kitchen features upgraded cabinets, Gas range, SS appliances, Quartz countertops, tile backsplash, Reverse osmosis, under cabinet & pendant lighting. Large neutral tile throughout (carpet in bedrooms only). So many upgrades like the gated stucco trash enclosure at the side of the home, 2-tone paint, highly upgraded window treatments & fans in every room. Front & back of the home are professionally landscaped. This is a must see! Welcome home!

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10438 E Twilight Drive Sun Lakes, AZ 85248

$459,000

3 Beds

2 Baths

1,972 SqFt

Status Active

MLS # 6662510

Property Type Single Family Residence

Price Type --

Here's the home that will fit both your lifestyle and finances. Ample opportunity to put your personal touches and imagination to make it you! Great room flows seamlessly in to the dining room, kitchen and breakfast room. Spacious Primary bedroom with patio access and updated bathroom. Large secondary bedrooms that overlook the front courtyard area. Updated guest bathroom. Additional 392 SQ FT of Bonus Rooms, ideal for home office, hobby, fitness or workshop. Use one for work and the other for play! Backyard covered patio is perfect for afternoon get-togethers after golf with friends. Very private, expansive backyard. Garage offers plenty of space for vehicles along with tons of storage. Ready to live the resort life? Come check out all this community has to offer and make the move! January 2024, All tile sections of the house and garage have had felt replaced, tiles reinstalled, broken tiles replaced and new flashings installed.

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17222 N Palo Verde Drive Sun City, AZ 85373

$459,000

2 Beds

2 Baths

1,967 SqFt

Status Active

MLS # 6674343

Property Type Single Family Residence

Price Type --

Completely REMODELED. BEAUTIFUL HOME INSIDE & OUT. GREAT ROOM CONCEPT. Sought after 55+ community. Newer ROOF & HVAC. NEW LOW E WINDOWS, DOORS, STUCCO/ROCK VENEER. WALLS & POPCORN CEILINGS REMOVED, CEILINGS RAISED new DRYWALL TEXTURE, VINYL PLANK FLOORING, CARPET & 4' BASEBOARDS. 2 tone paint inside & out, TILED showers, new tub, QUARTZ vanities! DOUBLE SINKS in PRIMARY. New Can lighting & electrical outlets. Nice Light fixtures. LARGE BEDROOMS w/Big CLOSETS! NEW SS APPLIANCES, QUARTZ COUNTERTOPS, CABINETS, TILE BACKSPLASH, faucets, sink, garbage disposal. New Hardware. TILED BACK PATIO. Garage Cabinets. NEW EPOXY FLOOR. Citrus trees. INSIDE LAUNDRY/NEW W&D. NEW ALARM. Flex room. New In ground TRASH RECEPTACLE. Near REC CENTERS, restaurants, shopping. Near 101. EXCEPTIONAL QUALITY! Sun City offers many amenities & low taxes! 7 Rec Centers with swimming pools, lap pools, walking pools, Hot tubs and every activity, work shop, & craft you can think of! Bowling! Pickleball! Shuffle Board! Pool Tables! Darts! Tennis! Ground Bowling! Mini Golf! Lake Activities! 9 Public Golf Courses & Reduced prices with Rec Card. And much more! Close to shopping, restaurants & entertainment! Close to Spring Training Base Ball Fields. Close to Arrowhead Mall, Lake Pleasant and all of it's growing amenities & restaurants nearby! Close to Grand Ave & 101 access! The list goes on & on! Call your Realtor today for more info!!! AGE RESTRICTED RETIREMENT COMMUNITY. ONE PERSON MUST BE 55 YEARS OLD AND NO ONE UNDER 19 YEARS OLD. ANYONE UNDER 19 CAN VISIT - SCHOA RESTRICTIONS APPLY.

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3928 E Branham Lane Phoenix, AZ 85042

$459,000

3 Beds

2.5 Baths

1,708 SqFt

Status Active

MLS # 6675226

Property Type Single Family Residence

Price Type --

Well maintained home in a nice gated Blossom Hills subdivision. Main bedroom suite on ground floor, spacious loft and 2 bedroom and a bath on the second floor. Open great room with kitchen, living and dining space with a half bath and Harry Potter closet under the stair and a nice size laundry room. 2 car garage, shared driveway. Wood look tile on the main floor and newer carpet on stair and upstairs loft and bedrooms. Easy freeway access. Seller related to Listing Agent. There is a one time Benefit Working Capital Fee of 114.00

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