What is a "rate lock period"?
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Lock It In
When you are promised a "rate lock" from the lender, it means that you are guaranteed to keep a certain interest rate over a determined period for the application process. This protects you from going through your entire application process and finding out at the end that the interest rate has gotten higher.
Although there are various lengths 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 choosing this option, will likely have a higher interest rate than you would have with a shorter span of time
More Ways to Get a Great Interest Rate
There are other ways to get a better rate, besides opting for a shorter rate lock period. The larger down payment you make, the better the interest rate will be, since you will be starting with more equity. You can pay points to bring down your rate over the life of the loan, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..
Mortgage Affiliates of America, Inc. can answer questions about rate lock periods and many others. Call us: 203-730-4070.
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