What is a "rate lock period"?
Lock It In
When you're promised a "rate lock" from the lender, it means that you are guaranteed to keep a set interest rate over a determined period while you work on your application process. This prevents you from getting through your whole application process and discovering at the end that the interest rate has gone up.
While there may be a choice of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher rate than you would have with a shorter rate lock period
Other Interest Saving Strategies
In addition to choosing a shorter lock period, there are more ways you can get the lowest rate. The bigger down payment you can make, the smaller your rate will be, as you will be entering the loan with more equity. You may opt to pay points to lower your interest rate for the term of the loan, meaning you pay more up front. To a lot of people, this makes sense and is a good deal..
Alternative Mortgage Group can answer questions about rate lock periods and many others. Give us a call: 561-395-4264.