What is a "rate lock period"?

Locking in your Interest Rate

A rate "lock" or "commitment" is a lender's promise to lock in a certain interest rate and a particular number of points for you for a certain period while your application is processed. This ensures that your interest rate won't get higher during the application process.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in choosing this option, will likely have a higher interest rate than you would have with a shorter period

Other Ways to Save on Interest

There are other ways to get a better rate, in addition to going with a shorter rate lock period. A bigger down payment will give you a better interest rate, because you will have more equity from the beginning. You might opt to pay points to reduce your rate over the life of the loan, meaning you pay more up front. To many people, this makes financial sense..

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

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