What is a "rate lock period"?

Locking in your Interest Rate

When you are offered a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate for a certain number of days for your application process. This saves you from getting through your entire application process and finding out at the end that your interest rate has gotten higher.

While there are several lengths of rate lock periods (from 15 to 60 days), the longer spans are generally 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 with a shorter period

Other Ways to Save on Interest

In addition to going with the shorter lock period, there are other ways you are able to attain the best rate. A larger down payment will get you a lower interest rate, because you are starting out with more equity. You can pay points to bring down your rate for the term of the loan, meaning you pay more initially. For a lot of people, this makes financial sense..

Diamond Mortgage, LLC can walk you through the pitfalls of getting a mortgage. Call us: 3178427744.