Three benefits of locking in your interest rate

Home Buying

With the recent short-term interest rate hike by the Federal Reserve1, it seems like conversations and news reports of increasing interest rates are everywhere. If you’re in the market to purchase a new home, the uncertainty around fluctuating rates may give you pause. But there’s no need to let the worry of rising rates keep you up at night. There are financing solutions that could help lock in you interest rate while you shop for a home, giving you the peace of mind to focus on what matters – finding your next home.

At Evergreen Home Loans™ we’re excited to offer a solution to rising interest rates. Our Lock and Shop program allows homebuyers to lock in their interest rate while they shop for their next home. This financing option could provide stability, particularly when interest rates fluctuate. Here are three of the benefits of this program:

Shop without watching rates. If you’re currently shopping for a home, or if you’re starting to explore your homebuying options, you’ve likely heard how competitive the housing market is in many areas across the country. With low inventory and an increase in competition, it’s not unusual for it to take a bit longer than you may expect to find your dream home and have your offer accepted. Locking in your interest rate with the Evergreen Lock and Shop program allows you to focus on your home search, instead of watching where interest rates are headed.

Extend your buying power. As interest rate increase, the amount of home you can afford to purchase decreases. This is because as interest rate rise, a higher portion of your monthly mortgage payment will be devoted to paying the interest you owe on the loan. You’ll qualify for a lower loan amount to ensure that after your interest payment, you can afford the principal payment due each month. Lock and Shop can offer some protection against this. The program offers 60, 75, and 90-day lock terms. This means your buying power is locked in while you shop for a home. In addition, extensions are allowed if you need extra time to find a property you love.

Float down to a lower rate. If you’re worried that by locking in your interest rate you’ll miss the opportunity if rates decrease, don’t be! If interest rates go down during your lock period, you can take advantage of the lower rate with a float down option2. This allows you to lock in the lower rate and continue shopping for your home knowing you’re in a great position with your home financing.

Evergreen’s Lock and Shop program is designed to help you focus on your home search without the worry of unexpected changes to your interest rate. We believe that our job is to help put our customers in the very best position possible to buy a home they love. This program is just one of the financing solutions we offer to help you do just that. If you’re interested in learning more about our Lock and Shop program, or the other ways we can help you home, contact one of our knowledgeable Loan Officers today!

  1. https://www.federalreserve.gov/newsevents/pressreleases/monetary20220504a1.htm#:~:text=Decisions%20Regarding%20Monetary%20Policy%20Implementation&text=The%20Board%20of%20Governors%20of,%2C%20effective%20May%205%2C%202022.
  2. Restrictions and limitations apply; please ask for details

©2022 Evergreen Home Loans and Evergreen are the trademarks or registered trademarks of Evergreen Moneysource Mortgage Company® NMLS ID 3182. Trade/service marks are the property of Evergreen Home Loans. All rights reserved. Licensed under: AZ Mortgage Banker 0910074; CA Licensed by Department of Financial Protection and Innovation under the CA Residential Mortgage Lending Act 4130291; CO Mortgage Company Registration; ID Mortgage Broker/Lender MBL-3134; MT Mortgage Lender License 3182, NV Mortgage Company License 4837; Licensed under the OR Consumer Finance Act ML-3213; TX Department of Savings and Mortgage Lending Company License; WA Consumer Loan Company CL-3182; WY Mortgage Lender/Broker 3467.

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