What is a "rate lock period"?
Lock It In
A rate "lock" or "commitment" is a lender's promise to hold a particular interest rate and a specific number of points for you for a specified period of time while your application is processed. This prevents you from getting through your whole application process and discovering at the end that the interest rate has gone up.
Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer ones usually costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher interest rate than you would with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
In addition to going with the shorter rate lock period, there are other ways you can attain the best rate. The bigger the down payment, the lower the rate will be, because you will be starting with more equity. You could opt to pay points to bring down your interest rate for the loan term, meaning you pay more up front. For a lot of people, this is a good option..
Washingtonian Mortgage, LLC can answer questions about rate lock periods and many others. Give us a call: 410-451-2755.