What is a "rate lock period"?

Lock It In

A rate "lock" or "commitment" is a promise from the lender to hold a certain interest rate and a certain number of points for you for a specified period while your application is processed. This saves you from working through your whole application process and learning at the end that your interest rate has gotten higher.

Although there can be a choice 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 making this choice, will most likely have a higher interest rate than you would with a shorter period

More Ways to Save on Interest

In addition to opting for a shorter rate lock period, there are more ways you can get the lowest rate. A larger down payment will result in a reduced interest rate, because you will have a good deal of equity at the start. You can pay points to improve your interest rate over the life of the loan, meaning you pay more initially. For a lot of people, this makes sense and is a good deal..

At 1st Credential Mortgage Inc, we answer questions about this process every day. Call us: (281) 778-0805.

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