Interest rates can fluctuate frequently in response to economic conditions, inflation and many other factors. Because these rates can be so unpredictable, Rural 1st offers you the ability to convert your loan through our Conversion Program annually (or every 12 months) for a $500 conversion fee*. Here are some reasons you might want to lock in an interest rate:
Ability to plan ahead
When you lock in a rate, you guarantee your interest rate won’t go up—it will stay the same for the remainder of the loan process. This way, you will know exactly what rate to expect when you close.
Once you’re locked in, you can calculate what your monthly mortgage payment will be and factor it into your financial planning.
Protection from the unexpected
Finally, locking in will protect you from any increases while your loan is in process. Even if interest rates spike, you can rest assured your loan will not be impacted.
Work with your Rural 1st Loan Officer to determine when the best time is to lock your rate after your application is approved. A rate lock is not the same as a loan approval or commitment.
If you’d like to learn more about rate locking or our Conversion Program*, contact your Rural 1st Loan Officer. They can walk you through our standard lock periods, terms and more to help you decide what’s best for you.
*Provided that eligibility requirements are met. Conversion has a one-time fee of $500. Terms and Conditions may apply. The fee is subject to change without notice.