Rate Holds

Rate Holds

What is a Rate Hold?

Rate holds come along with pre-approvals and lock in a rate for you. This gives you protection from rising interest rates while you’re searching for your dream home.

When Should I Get a Rate Hold?

When you are ready to purchase a home it’s a good idea to get a pre-approval and rate hold. Being pre-approved lets you beat less prepared buyers when you find the house you want to buy. The rate hold will be part of the pre-approval.

What If Rates Go Down?

Rate holds are a win-win because if the rates go down, you will get the lower rate, and if rates go up you will get the rate from the rate hold.

How Long Does a Rate Hold Last?

Rate holds typically last 120 days. If after 120 days have passed you haven't found a home, we can extend the rate hold for another 120 days for you.

What else do I need to know?

Rates can vary depending on the following:

  • Closing date – 30, 60, 90 day rate holds (Quick closes can have better rates).
  • Pre-approval vs. accepted offer/live deal.
  • Purchase, refinance, transfer/switching lenders.
  • Qualified application vs. self-employed, stated income application.
  • Principal residence or rental property.
  • Insured or conventional application.
  • Low rate ‘basic’ product where the penalty to break the mortgage is 3% of the balance (significantly higher than a typical 3 months of interest penalty).
  • Credit History.
  • Our job is to put you in a mortgage product that suits your needs, and with the best rate available.