What is a "rate lock period"?

What is a Rate Lock?

When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a particular 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, anywhere from fifteen to sixty days, with the longer ones generally costing more. You can get a longer period for your lock, but in making this choice, will probably have a higher interest rate than you would have with a shorter rate lock span of time

More Ways to Save on Interest

In addition to opting for the shorter lock period, there are more ways you are able to score the lowest rate. A bigger down payment will result in a better interest rate, since you're starting out with a good deal of equity. You might choose to pay points to bring down your interest rate over the term of the loan, meaning you pay more initially. To a lot of people, this makes financial sense..

1st Credential Mortgage Inc can answer questions about rate lock periods & many others. Give us a call at (281) 778-0805.

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