Mortgage Rates, Rate Locks, and Points

Mortgage rates get a lot of attention, but a quoted rate by itself doesn’t tell you the whole story.

What determines the rate you’re offered? When should you lock it? What happens if rates change after you lock? And does it make sense to pay points for a lower rate?

In this workshop, we’ll explain how mortgage rate quotes work in practical terms and why different loan programs, borrower profiles, and loan structures can produce different pricing.

We’ll look at what a rate lock actually does, why locks have expiration dates, how the length of the lock can affect pricing, and what may happen if your closing is delayed.

We’ll also discuss discount points and lender credits. Paying points means spending more money upfront in exchange for a lower interest rate, while a lender credit works in the opposite direction — accepting a higher rate in exchange for help with closing costs.

We’ll show you how to think about the break-even point so you can decide whether paying more upfront is likely to make sense for your plans.

The goal isn’t to predict where mortgage rates are going. It’s to help you understand the choices you can control when it’s time to choose and lock your rate.