What is a "rate lock period"?
What is a Rate Lock?
A rate "lock" or "commitment" is a lender's promise to freeze a specific interest rate and a particular number of points for you for a specified period of time while your application is processed. This protects you from working through your whole application process and finding out at the end that your interest rate has gone up.
Although there are various lengths of rate lock periods (from 15 to 60 days), the longer ones are generally more expensive. 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 rate lock period
Other Interest Saving Strategies
There are other ways to get a good rate, besides opting for a shorter rate lock period. The larger the down payment, the lower your interest rate will be, as you will have more equity from the beginning. You may choose to pay points to reduce your interest rate over the loan term, meaning you pay more initially. For a lot of people, this is a good option..
Executive Lending Group, LLC can walk you through the pitfalls of getting a mortgage. Give us a call at (816) 525-8000 & (81.
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