What is a "rate lock period"?
Locking It In
When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate over a certain number of days for the application process. This ensures that your interest rate can't grow during the application process.
Although there are several lengths of rate lock periods (from 15 to 60 days), the extended ones are typically more expensive. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would with a shorter rate lock period
Other Interest Saving Strategies
In addition to going with a shorter rate lock period, there are several ways you may be able to score the lowest rate. The bigger down payment you pay, the better the rate will be, because you will have more equity from the start. You can pay points to improve your rate for the loan term, meaning you pay more up front. To many people, this is a good option..
At Lear Financial Group LLC.
, we answer questions about this process every day. Call us: 214-869-7339.