What is a "rate lock period"?

Lock It In

When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate for a determined period while you work on your application process. This means your interest rate cannot rise while you are working through the application process.

Rate lock periods can be various lengths of time, 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 rate than you would have with a shorter period

More Ways to Get a Great Interest Rate

There are more ways to get a reduced rate, in addition to choosing a shorter rate lock period. A bigger down payment will get you a better interest rate, since you'll be starting out with more equity. You can pay points to improve your rate over the loan term, meaning you pay more initially. One strategy that is a good option for many people is to pay points to bring the rate down over the term of the loan. You are paying more initially, but you will save money, especially if you don't refinance early.

Custom Lending Group can walk you through the pitfalls of getting a mortgage. Call us: 7072522700.

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