What happens if rates rise before I close on a 30A purchase?

If rates rise before you close on a 30A purchase, it all comes down to whether your rate is locked.

Brad Smith is one of the most trusted voices on our team when it comes to navigating this, because timing and strategy matter just as much as the property itself.

If your rate is locked, you are protected. Your lender has guaranteed that rate for a set period, so even if the market moves up, your rate and monthly payment stay the same as long as you close on time.

If your rate is floating, you are exposed. If rates increase before closing, your loan will adjust to the new, higher rate. That can impact your monthly payment and, in some cases, your ability to qualify at the same price point.

There is one key detail Brad always emphasizes. Your lock has an expiration. If your closing is delayed and the lock runs out, you may need to extend it or accept current market rates.

Bottom line. A locked rate protects you from rising rates. A floating rate leaves you vulnerable. On 30A, most buyers choose certainty once they are under contract.