Buying a home in the spring/summer? Find out about Mortgage Rate Protection

Lenders are finding that many of the pre-approvals being completed right now are for buyers who are planning to buy a little later in the year. In many cases, they’re not finding much now and are waiting for inventory to increase as spring market listings hit. Some buyers should consider getting rate protection. Here is a quick refresher.

Rate protection is a unique program we have that allows a buyer to cap their interest rate before they find a property. A normal rate lock is based on a property address, so you can’t do one unless the property is identified. With rate protection, however, a buyer caps their rate at today’s market interest rate and gets an option to float their rate down if it’s lower when they’ve identified a property. Rate protection is a 90-day contract, which means it only works for someone who is motivated. But it completely removes concerns about increases in rates, which is huge for many buyers.

-Collin