What is a "rate lock period"?

Locking in your Interest Rate

When you're offered a "rate lock" from your lender, it means that you are guaranteed to get a specific interest rate for a certain number of days while you work on the application process. This protects you from working through your entire application process and discovering at the end that your interest rate has gotten higher.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer ones typically costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher interest rate than you would with a shorter rate lock period

More Ways to Get a Great Interest Rate

In addition to going with a shorter lock period, there are several ways you can attain the lowest rate. A larger down payment will give you a reduced interest rate, because you'll have more equity at the start. You can pay points to bring down your rate for the loan term, meaning you pay more up front. One strategy that is a good option for many people is to pay points to bring the rate down over the life of the loan. You are paying more up front, but you will save money in the end.

Executive Lending Group, LLC can walk you through the pitfalls of getting a mortgage. Give us a call: 8165258000.