Smart strategy saves thousands mortgage rate lock vs float
Real-World Examples and Statistics
Consider the scenario of a $300,000 mortgage. Locking in a rate at 3.5% versus floating to potentially secure a 3.25% rate could save you approximately $15,000 over a 30-year term1. However, if rates rise to 3.75% instead, locking early could save you nearly $20,000 in interest costs. According to Freddie Mac, the average 30-year fixed mortgage rate has seen fluctuations of up to 0.5% within a few months, underscoring the importance of timing2.