Whether it's your first mortgage or you are a seasoned veteran, taking out a mortgage can be a scary process. There's a lot of money on the line and a lot of confusing terminology to understand. One example of such terminology is mortgage locks. Fortunately, mortgage locks are a simple enough concept to understand. In fact, they are one of the best things you can have when taking out a mortgage.
Mortgage locks are a guarantee from your mortgage lender that your interest rates will not change over a certain duration of time. These rate locks typically last 30, 45 or 60 days and protect you against rising interest rates while you are going through the loan application process. For example, if you lock in a rate of 4% when you first begin the mortgage process, you are guaranteed to receive a mortgage at that rate so long as the process is completed within the life-cycle of your mortgage lock. It's a great tool that allows you to lock-in the best possible rate without fear of it going up before you are able to finalize your mortgage.
At Midland Mortgage, we offer mortgage locks to all of our clients and will even work with you to help you determine the best time to lock in your mortgage for the optimal rate. If you would like to learn more about mortgage locks or about any other of our services, contact us today!