Saturday, January 13, 2007

Real Estate Transaction

When a homebuyer applies for a mortgage, the interest rate is typically locked in for a certain period of time, usually 30 days. If the real estate transaction doesn't close within that 30-day window, the mortgage interest rate can increase. "Should a lock-in rate of 6.5 percent lapse and rise to 7 percent on a $450,000, 30-year mortgage, the added payments would total nearly $54,000 more over the life of the loan.

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