What is a "rate lock period"?
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What is a Rate Lock?
A rate "lock" or "commitment" is a lender's promise to set a certain interest rate and a specific number of points for you for a specified period of time during your application process. This means your interest rate will not grow as you are going through the application process.
Rate lock periods can vary in length, between 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would have with a shorter rate lock period
Other Interest Saving Strategies
In addition to opting for the shorter rate lock period, there are more ways you may be able to score the best rate. The larger down payment you make, the lower the rate will be, because you will be entering the loan with more equity. You might opt to pay points to bring down your interest rate over the term of the loan, meaning you pay more up front. To many people, this makes financial sense.
Mac 5 Mortgage can walk you through the pitfalls of getting a mortgage. Call us at 970-625-8686.