What is a "rate lock period"?
What is a Rate Lock?
A rate "lock" or "commitment" is a lender's promise to set a specific interest rate and a specific number of points for you for a certain period while your application is processed. This ensures that your interest rate will not go up as you are working through the application process.
Although there are several lengths of rate lock periods (from 15 to 60 days), the longer ones are usually more expensive. You can get a longer period for your lock, but in making this choice, will probably have a higher interest rate than you would with a shorter period
Other Interest Saving Strategies
There are more ways to get a good rate, in addition to opting for a shorter rate lock period. A bigger down payment will give you a lower interest rate, since you'll be starting out with more equity. You could opt to pay points to bring down your interest rate over the loan term, meaning you pay more up front. One strategy that is a good option for some is to pay points to bring the rate down over the term of the loan. You'll pay more initially, but you will come out ahead in the long run.
Washingtonian Mortgage, LLC can walk you through the pitfalls of getting a mortgage. Call us at 4104512755.