• Dean Lawton

Should You Get a Rate Hold?

Updated: May 5, 2020

Have you ever thought “Should I get a rate hold and what might the rate be?”

We are commonly asked:

  • What is my rate?

  • What is a rate hold?

  • How long does it last?

Most commonly, rate holds are for 90-100 days and in some cases as long as 18 months. Additionally, rate holds do not provide you with the best rate available in the market.

So you may be thinking, “If I don’t get the best rate available at the time of doing a rate hold, then why would I do one?” Rate holds do protect you from Market Variations. In the recent past, we saw rates suddenly rise by 0.25% - 0.50%, and rate holds are usually not 0.25% higher than the best available rate at the time of completion. So, in a situation where the market sees an increase in rates, our clients maintain a lower rate since we always complete a rate hold with a Lender as a so-called insurance policy.

Now, what if you complete a rate hold and 3-4 months later, when you make a purchase, we notice the rates have gone down? In this case, we will secure you the lowest rate available at the time of your Purchase.

We always have your back, and our transparent process and extra effort are what sets us apart. If you have any further questions about a rate hold or your Pre-Approval in particular, please reach out to the team so we can assist you!

Thrive Team

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