What is a "rate lock period"?

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to freeze a certain interest rate and a certain number of points for you for a certain period while your application is processed. This means your interest rate won't rise as you are going through the application process.

While there are several lengths of rate lock periods (from 15 to 60 days), the longer ones are generally more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher interest rate than you would with a shorter period

More Ways to Save on Interest

In addition to choosing a shorter rate lock period, there are more ways you can attain the best rate. The bigger the down payment, the lower the rate will be, because you will be entering the loan with more equity. You may opt to pay points to bring down your rate over the loan term, meaning you pay more up front. For many people, this makes financial sense..

Executive Lending Group can walk you through the pitfalls of getting a mortgage. Call us: (405) 615-8543.

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