What is a "rate lock period"?

What is a Rate Lock?

When you are offered a "rate lock" from your lender, it means that you are guaranteed to get a particular interest rate over a certain number of days while you work on the application process. This protects you from getting through your entire application process and learning at the end that the interest rate has gotten higher.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would with a shorter rate lock span of time

Other Interest Saving Strategies

In addition to opting for the shorter lock period, there are several ways you can get the best rate. The bigger the down payment, the smaller your interest rate will be, as you will be entering the loan with more equity. You may opt to pay points to bring down your interest rate over the term of the loan, meaning you pay more initially. To a lot of people, this is a good option..

Diamond Mortgage, LLC can walk you through the pitfalls of getting a mortgage. Give us a call at 3178427744.