What is a "rate lock period"?

Lock It In

When you're promised a "rate lock" from a lender, it means that you are guaranteed to keep a particular interest rate over a certain number of days while you work on the application process. This prevents you from going through your entire application process and finding out at the end that the interest rate has risen higher.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer spans generally costing more. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would have with a shorter period

Other Interest Saving Strategies

There are more ways to get a reduced rate, in addition to opting for a shorter rate lock period. A larger down payment will result in a better interest rate, since you will have a good amount of equity at the start. You can pay points to reduce your rate for the loan term, meaning you pay more up front. To many people, this makes sense and is a good deal..

At ADVISORY MORTGAGE, we answer questions about this process every day. Give us a call: 8102292820.