Residential Mortgage Rate Protection
With long term mortgage rates on the move, on easy to utilize strategy that can save you a pile of money right now is to get a residential mortgage pre-approval at the existing long term rates.
What this does is give you the option to refinance you mortgage at the current rates in the event that rates continue to rise. Because the current rates can be locked in for 120 days, you can sit back and see if more rate increases are ahead.
If they are, then you’re prepayment penalty is going to be reduced as it will be based on the current mortgage rates prevailing at the time of the refinance.