What is a "rate lock period"?
Locking in your Interest Rate
A rate "lock" or "commitment" is a promise from the lender to set a certain interest rate and a specific number of points for you for a specified period of time while your application is processed. This ensures that your interest rate can't get higher as you are going through the application process.
Rate lock periods can vary in length, between 15 to 60 days, with the longer spans generally costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher interest rate than you would with a shorter rate lock period
Other Ways to Save on Interest
In addition to opting for a shorter rate lock period, there are more ways you can attain the best rate. The bigger the down payment, the better the interest rate will be, because you will be entering the loan with more equity. You might choose to pay points to bring down your interest rate for the term of the loan, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..
Ward Kilduff Mortgage can walk you through the pitfalls of getting a mortgage. Call us at (860) 658-7100.
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