If I apply for a mortgage today, why would the interest rate be different if closed on a home a month from now

Answer 1

Unless you "lock in" the rate could go up or down in a month.
To help you make this decision here are sites that give you interest rate trends and forecasts.
http://mortgage-x.com/trends.htm
http://www.forecasts.org/fha.htm
Note that the second URL shows that the forecast is for a very slight increase in the next month. For such a slight potential increase it may not justify the expense of locking in.
Hope this helps.

Answer 2

Rates offered by lenders are subject to the daily fluctuations of the markets. Therefore, if you took an application today, and then locked the rate tomorrow, the rate could be different.

Please note, you lock your rate once you have your house under contract. If you applied for a mortgage today, more than likely it will take a few weeks to find the house you want to buy. Once you have a signed contract then you call your lender and let them know you want to lock.

Also to note, if you're closing date is greater than 60 days from the time you have a signed contract you will want to review with your mortgage person whether it's better to lock then or wait. The reason I say this is the interest rates on 90 day locks are higher than on 60 day locks.

Answer 3

Mortgage rates are subject to change daily and in volatile times can change several times a day either up or down. Brokers are paid by Lenders to close loans through them. Brokers quote rates based on what the lender will pay them for a 30 day lock. Lenders typically offer 30, 45, 60 and 90 locks. The longer the lender has to tie up their money the less they pay the broker. Therefore if you need to lock in for longer than 30 days the rate will usually be about 1/8 to 1/4 higher for each additional 15 days.
This site http://www.megamortgagesite.com lists mortgage brokers throughout the country and many post their rates on their site.
Remember one thing, rates are based on risk , the higher the risk the higher the rate.

Answer 4

You have to specify whether you want to "float" your rate or "lock" it in... Most lenders will lock your rate in for up to 45 days for free if you choose. The reason your rate could be different is because rates depend entirely on the market, and can change every day, sometimes even twice the same day.

Answer 5

Because unless the loan is locked then the rates fluctuate daily. If you apply for a loan then your broker or loan officer should lock the loan at a rate that you guys have agreed on.

Answer 6

It won't be different if you lock it in today. Rates change on a daily and sometimes hourly basis.

Answer 7

It depend on weather or not you "lock" in your intrest rate when you are accepted for the financing...most places will "lock" your intrest rate for at least 30 days...