What is a "rate lock period"?
Freezing the Rate
A rate "lock" or "commitment" is a lender's promise to hold a specific interest rate and a certain number of points for you for a specified period while your application is processed. This prevents you from getting through your entire application process and learning at the end that the interest rate has gone up.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher interest rate than you would have with a shorter span of time
Other Interest Saving Strategies
In addition to opting for a shorter rate lock period, there are more ways you can get the lowest rate. A bigger down payment will result in a reduced interest rate, since you'll have a good amount of equity from the beginning. You can pay points to bring down your interest rate over the loan term, 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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