What is a "rate lock period"?
What is a Rate Lock?
A rate "lock" or "commitment" is a lender's promise to hold a particular interest rate and a specific number of points for you for a certain period of time while your application is processed. This saves you from going through your entire application process and learning at the end that the interest rate has gone up.
Although there are various lengths of rate lock periods (from 15 to 60 days), the longer ones are typically more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would with a shorter span of time
More Ways to Get a Great Interest Rate
There are more ways to get a better rate, besides agreeing to a shorter rate lock period. A larger down payment will give you a lower interest rate, because you will have more equity from the beginning. You can pay points to improve your interest rate for the loan term, meaning you pay more up front. To many people, this is a good option..
Carter Financial Solutions can walk you through the pitfalls of getting a mortgage. Call us: 866-840-8745 x2.