What is a "rate lock period"?

Lock It In

When you're offered 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 won't rise during the application process.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer ones generally costing more. A lending institution will agree to freeze an interest rate and points for a longer span of time, say sixty days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of fewer days.

Other Ways to Save on Interest

There are more ways to get a low rate, in addition to opting for a shorter rate lock period. A larger down payment will give you a better interest rate, since you'll have a good deal of equity at the start. You may choose to pay points to bring down your interest rate for the loan term, meaning you pay more initially. To a lot of people, this is a good option..

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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