What is a "rate lock period"?
Locking in your Interest Rate
When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate for a determined period for the application process. This prevents you from working through your entire application process and finding out at the end that your interest rate has gotten higher.
Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer spans usually costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would with a shorter span of time
Other Interest Saving Strategies
There are other ways to get a reduced rate, in addition to agreeing to a shorter rate lock period. The more the down payment, the lower your rate will be, as you will have more equity from the start. You may opt to pay points to improve your interest rate over the term of the loan, meaning you pay more initially. To a lot of people, this is a good option..
At Executive Lending Group, LLC, we answer questions about this process every day. Give us a call: (816) 525-8000 & (81.
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