What is a "rate lock period"?
Locking in your Interest Rate
When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a certain interest rate for a determined period while you work on your application process. This saves you from working through your entire application process and discovering at the end that your interest rate has gotten higher.
Although there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. You can get a longer period for your lock, but in doing so, will probably have a higher interest rate than you would have with a shorter period
More Ways to Get a Great Interest Rate
There are other ways to get a better rate, in addition to agreeing to a shorter rate lock period. A bigger down payment will result in a lower interest rate, because you will be starting out with more equity. You can pay points to lower your interest rate over the loan term, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to bring the rate down over the life of the loan. You will pay more up front, but you'll save money in the long run.
Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 can answer questions about rate lock periods & many others. Give us a call at 214-663-5355.