A mortgage applicant who anticipated increasing interest rates would be most interested in

Question

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A mortgage lock-in is an agreement between the borrower and the lender to guarantee a specific interest rate for a certain period of time, typically between 30 and 60 days. This ensures that the borrower will be protected from any rate increases during the lock-in period. Therefore, a mortgage applicant who anticipates increasing interest rates would be most interested in obtaining a mortgage lock-in. Choice A) a settlement statement is a document that outlines all the costs associated with obtaining a mortgage loan and is typically reviewed at closing. Choice B) refinancing a mortgage involves paying off an existing mortgage with a new one, and it may or may not result in a lower interest rate. Choice D) a due-on-sales clause is a provision in a mortgage that requires the borrower to pay the full balance of the loan if the property is sold, which is unrelated to interest rate fluctuations.

A Mortgage Applicant Who Anticipated Increasing Interest Rates Would Be