Locking in an Interest Rate
Locking in the lowest interest rate possible makes a big difference in what you'll pay over the life of your mortgage loan.
Mortgage interest rates can change daily, due to fluctuations in the market and other economic factors. Locking in your interest rate can give you the security that eliminates the risk of market volatility during the mortgage process. And while locking in a rate does not obligate you to commit to a mortgage until closing, you cannot close on a mortgage without a rate lock. On average, a rate lock expires between 35-50 days.
Rate Lock Advantages
The most obvious advantage of locking in a rate is the rate and payment will not go up between purchasing and closing. This protects the Borrower from changes in the rate that could effect their ability to qualify for the loan. Borrowers who would like to wait and "float" run the risk of rates increasing, as well as the possibility of them improving. Lower interest rates can also decrease other mortgage costs, such as points (one point equals one percent of the loan amount). Even one quarter of a percentage point can save you thousands of dollars over the life of your mortgage.
Interest Rate Information
Your MidCountry Bank mortgage advisor confirms your rate if you'd like it locked at time of application. If you prefer to wait for the possibility of a lower interest rate, you must contact your mortgage expert to lock in the rate between 10:00 am - 4:30 pm Monday - Friday (Central Standard Time).
Understanding the advantages of locking in the lowest interest rate possible on your mortgage empowers you on your journey to new homeownership.
Complete Homebuyer's Mortgage Guide
Minimum and Maximum loan amounts apply. Rates and programs subject to change at any time. Loans subject to borrower qualifications, property evaluation and credit approval. All rates and program guidelines subject to change without notice based on consumer eligibility and marketing conditions. All loans subject to credit approval and compliance with underwriting standards.