What is a "rate lock period"?

Lock It In

When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a particular interest rate over a determined period for the application process. This means your interest rate will not grow during the application process.

Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer period typically costing more. The lender may agree to hold an interest rate and points for a longer span of time, like sixty days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of fewer days.

More Ways to Get a Great Interest Rate

There are more ways to get a good rate, in addition to agreeing to a shorter rate lock period. A larger down payment will give you a lower interest rate, because you will have a good amount of equity from the beginning. You could choose to pay points to lower your interest rate over the life of the loan, meaning you pay more up front. To many people, this makes financial sense..

1st Credential Mortgage Inc can walk you through the pitfalls of getting a mortgage. Give us a call: (281) 778-0805.

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