What is a "rate lock period"?
Lock It In
When you're promised a "rate lock" from your lender, it means that you are guaranteed to get a certain interest rate over a certain number of days for your application process. This protects you from working through your whole application process and discovering at the end that your interest rate has risen higher.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer period usually costing more. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would with a shorter span of time
Additional Ways to Save on Interest
There are more ways to get a better rate, besides going with a shorter rate lock period. A bigger down payment will get you a reduced interest rate, since you'll have more equity at the start. You can pay points to bring down your rate over the life of the loan, meaning you pay more up front. To many people, this makes financial sense..
Financial Edge Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Call us: 425-508-9988.
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