What is a "rate lock period"?
Locking in your Interest Rate
A rate "lock" or "commitment" is a promise from the lender to set a specific interest rate and a specific number of points for you for a certain period during your application process. This ensures that your interest rate will not get higher while you are working through the application process.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer ones 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 with a shorter rate lock period
Other Ways to Save on Interest
In addition to choosing a shorter rate lock period, there are more ways you are able to attain the best rate. The larger down payment you can pay, the lower your interest rate will be, as you will be entering the loan with more equity. You can pay points to bring down your rate for the life of the loan, meaning you pay more up front. For many people, this is a good option..
Alternative Mortgage Group can answer questions about rate lock periods and many others. Give us a call: 561-395-4264.