What is a "rate lock period"?

Lock It In

When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate over a determined period while you work on the application process. This means your interest rate cannot get higher while you are working through the application process.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer spans usually costing more. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would with a shorter span of time

More Ways to Get a Great Interest Rate

There are other ways to get a good rate, besides opting for a shorter rate lock period. The bigger the down payment, the smaller the rate will be, because you will have more equity from the beginning. You can pay points to lower your rate over the life of the loan, meaning you pay more initially. To many people, this makes financial sense..

At Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234, we answer questions about this process every day. Call us: 2146635355.