Question:

I am refinancing – can I still use interest rate protection?

Answer:

Surely. Interest rate protection or lock is usually available on all types of home transactions - purchases, refinances, prequalification.

Usually, greater choice for rate lock periods is available when purchasing a house. The difference between interest rate lock and protection is that one you buy the lock you can't get the lower rate if rates fall.

Common Interest Rate Protection and Locks Features

If rates increase before your loan closes, you are protected by a cap rate.

If interest rates go down, usually lenders offer one-time option to lock at the lower rate. This option can be exercised during a lender specified time frame (or window).

If you don't exercise your right to close during the preset time window, you get the rate under the agreed upon interest rate protection terms.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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