So you’ve applied for your mortgage, and you decided to float the rate initially because you think rates will come down. You call your loan officer every day to check on rates.  He tells you a rate you like. It’s Wednesday at 3:00 pm.  You tell him you’re going to think about it and get back to him.

The next day, some news comes out that shows the economy is doing better than expected. The bond market sells off which means rates will go up. It’s 9:30 am Thursday morning.  You call your loan officer and tell him to lock in your rate.

He says, “I can’t. We’re in the black out period.”

What? You can’t lock in your rate?

He tells you he has to wait for the new rates to come out. The old rates are no good anymore, and the new ones haven’t come out yet.

You sit by the phone, waiting for the new rates to come out, worrying you’ve just missed your chance to lock in a good rate. Fortunately, the rate didn’t move. You tell your loan officer to lock it in.

What just happened?

Most lenders have a black out period. The old rates are gone; the new ones haven’t come out yet. When you’re floating your rate, you need to ask 5 important questions to avoid making an expensive mistake.

Insider’s Tip: find out if your lender has a black out period and when it is

To find out how to avoid getting stuck in a black out period, call Amerifund at (888) 650-7316 or fill  out this form and someone will contact you.