What is a "rate lock period"?
Locking in your Interest Rate
When you're offered a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate for a certain number of days while you work on your application process. This saves you from going through your entire application process and learning at the end that your interest rate has gotten higher.
Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer spans usually costing more. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would have with a shorter period
More Ways to Get a Great Interest Rate
In addition to going with the shorter lock period, there are other ways you can score the lowest rate. A larger down payment will result in a better interest rate, because you will have more equity at the start. You may choose to pay points to bring down your interest rate over the life of the loan, meaning you pay more up front. To many people, this makes financial sense..
Savers Home Loans can walk you through the pitfalls of getting a mortgage. Give us a call at (800) 974-0509.