What is a "rate lock period"?

Lock It In

When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a determined period while you work on the application process. This ensures that your interest rate cannot grow during the application process.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer spans generally costing more. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would with a shorter period

Other Interest Saving Strategies

There are other ways to get a better rate, besides agreeing to a shorter rate lock period. The bigger down payment you can make, the smaller the interest rate will be, since you will have more equity from the start. You may choose to pay points to reduce your rate over the life of the loan, meaning you pay more up front. One strategy that is a good option for many people is to pay points to bring the rate down over the life of the loan. You are paying more initially, but you'll save money in the long run.

Executive Lending Group, LLC can answer questions about rate lock periods & many others. Call us: 8165258000.