What is a "rate lock period"?

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to set a particular interest rate and a certain number of points for you for a certain period during your application process. This means your interest rate cannot get higher during the application process.

Although there might be a choice 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 rate lock span of time

Other Interest Saving Strategies

In addition to choosing the shorter lock period, there are several ways you may be able to get the best rate. The more the down payment, the better your interest rate will be, as you will have more equity from the start. You might choose to pay points to bring down your rate over the loan term, meaning you pay more up front. To many people, this makes sense and is a good deal..

Yamini Patel can walk you through the pitfalls of getting a mortgage. Call us at (832) 730-2000.

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