Housing rates can ‘fall’ back

October is a month of change. In Maricopa we may not see a lot of leaves falling or changing color but we do finally have our windows open, and our Snowbird neighbors are starting to arrive.

We welcome you back. The city has grown in many ways since last year; just take a drive around and you will see new homes, new buildings and new businesses.

As housing needs change, people finally can upgrade into a larger home and some people may be able to keep their current home as a rental investment. Another area of change lately has been in the lending world. 

Interest rates still are at a record low but there have been some fluctuations with rates going up and down. When you purchase a home your lender will want to “lock in a rate.” This serves to protect you and ensure that if rates go up you are guaranteed the lower rate at the time you qualified for the loan.

What happens, though, if the interest rate decreases before you close? Some lenders offer a “one time” free float down option that can reduce your rate up to .375 percent of what you were locked in at originally, saving you money on your monthly mortgage.