What is a "rate lock period"?

Locking It In

When you're offered a "rate lock" from your lender, it means that you are guaranteed to keep a certain interest rate for a determined period for the application process. This prevents you from working through your whole application process and learning at the end that your interest rate has risen higher.

Rate lock periods can vary in length, between 15 to 60 days, with the longer period generally costing more. 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 have with a shorter rate lock period

More Ways to Get a Great Interest Rate

There are more ways to get a lower rate, in addition to choosing a shorter rate lock period. The bigger down payment you can make, the smaller your rate will be, because you will be starting with more equity. You can pay points to bring down your rate over the term of the loan, meaning you pay more up front. To many people, this makes sense and is a good deal..

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

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