What is a "rate lock period"?
Locking in your Interest Rate
When you're offered a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate for a certain number of days while you work on your application process. This means your interest rate will not go up as you are working through the application process.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer period typically costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would have with a shorter period
Additional Ways to Save on Interest
In addition to choosing a shorter lock period, there are more ways you can score the lowest rate. A larger down payment will result in a better interest rate, since you'll have a good deal of equity at the start. You can pay points to bring down your interest rate for the term of the loan, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to bring the rate down over the term of the loan. You pay more up front, but you will come out ahead, especially if you don't refinance early.
Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 can walk you through the pitfalls of getting a mortgage. Give us a call: 2146635355.