What is a "rate lock period"?

Freezing the Rate

When you're offered a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate over a certain number of days while you work on the application process. This protects you from getting through your whole application process and learning at the end that the interest rate has risen higher.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer period generally costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would have with a shorter rate lock span of time

Other Interest Saving Strategies

In addition to opting for a shorter rate lock period, there are other ways you may be able to score the best rate. A larger down payment will give you a better interest rate, because you'll have a good amount of equity at the start. You may opt to pay points to improve your interest rate for the term of the loan, meaning you pay more initially. For a lot of people, this makes sense and is a good deal..

Executive Lending Group can walk you through the pitfalls of getting a mortgage. Call us at 4056158543.

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Norman, OK 73069