Unfavorable mortgage rates can cripple a home loan. Here’s what you need to know to protect yourself.
Are you uncertain about when to lock in mortgage rates? This is a critical factor when aspiring homeowners are negotiating the long-term sustainability of their loan. At some point during the deliberating process, locking in the mortgage rate becomes very important. Here are a few reasons why:
- Mortgage rates refer to the interest on the home loan. Securing a mortgage rate lock means the figure you agree upon will no longer be subject to fluctuation. Closing on the home loan can take time, and housing market rates can fluctuate during this interim. Make sure you have all the details ironed out in the meantime.
- Make your mortgage rate a priority early on, and you have a better chance of guaranteeing a sustainable long-term payment plan. Paying off your loan is difficult enough without steep interest rates making monthly increases. Mortgages are a long-term commitment. A realistic financial projection is essential, and locking in the best mortgage rate as quickly as possible will mean you pay less over time.
- Lenders will occasionally put stipulations on the time frame of a mortgage rate lock. Simply put, borrowers have to work diligently with lenders to find an appropriate solution. Don't be afraid to hold your lender to the original market rate that you were promised. Most importantly, make sure you have a clear and explicit understanding of the terms your lender is offering on your mortgage rate when you settle your loan.
Are you prepared to secure the best mortgage rate lock on your home loan? For more information about locking in mortgage rates, contact our professional team at Midland Mortgage Corporation today.