What is a "rate lock period"?

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Locking in your Interest Rate

A rate "lock" or "commitment" is a promise from the lender to set a particular interest rate and a specific number of points for you for a certain period of time during your application process. This saves you from getting through your entire application process and discovering at the end that your interest rate has gotten higher.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer spans typically 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 with a shorter rate lock span of time

Other Interest Saving Strategies

In addition to choosing the shorter rate lock period, there are more ways you can score the lowest rate. The larger down payment you can make, the better your interest rate will be, since you will be starting with more equity. You might choose to pay points to bring down your rate for the life of the loan, meaning you pay more initially. For many people, this makes financial sense..

MarkAllenbach.Com can answer questions about rate lock periods & many others. Call us at 1-800-600-3863.