Should you be concerned about the increase of Mortgage rates?
If you saw the news yesterday you might be feeling a bit of a panic. It seems that anytime they can run with a ball they will. I am not going to give you any recommendations on if you should lock in your mortgage now or hang tight. I also won’t promise that rates will continue to go up or down. If we all knew those answers we would have clear idea of where to go from here.
What I will tell you is that if you are shopping for a new mortgage or you have a variable interest rate on your current mortgage there are two things you should do:
1) Ask your lender to provide a rate guarantee for you.
Depending on the lender they will hold for 30 - 120 days with the norm being 90 days.
This will ensure you can get the possible interest rate available to you. If the interest rates increase then you will get the guaranteed interest rate, if they go down you will get the lowest of the two.
2) Discuss with your lender the benefits and risks of different types of mortgages.
If you have your lender hold a rate for you it will eliminate panic and those knee jerk decisions. You will buy the time you need to evaluate your current situation, watch the market and find out how the different types of mortgages will affect you. Once you feel you have all the information you need you will be ready to make a decision.