What does it mean to lock the interest rate?
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Due to the nature of interest rate movements, mortgage rates can change dramatically from the day you apply for a mortgage loan to the day you close the transaction. If interest rates rise sharply during the application process, it could make a borrower's mortgage payment larger than he/she previously thought. To protect against this uncertainty, a lender can allow the borrower to 'lock-in' the loan's interest rate, guaranteeing the borrower the prevailing loan rate for a specified period of time (often 30-60 days). A lender may or may not charge a fee for this service. |
Common Home Loan QuestionsWhat are points? Should I pay points to reduce my rate? What is an APR? Should I lock in my interest rate? How is my credit score used? How can I improve my credit score? What is an appraisal? What is PMI? What happens at closing? |
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We'll do the rate shopping for you! We get rates from a variety of local and national lenders every day and give you the best Home Mortgage interest rates available.
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Every one of our loan officers is licensed by the State of Michigan and the Federal Government to conduct business as a Licensed Loan Originator. Not all mortgage professionals are, is yours?
No Junk Fees
Unlike other lenders, we do not ask for financial commitment fees, lock in fees, or big application fees just to get started with your Mortgage.
