When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate for a determined period while you work on your application process. This ensures that your interest rate will not grow while you are going through the application process.
Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer period typically costing more. You can get a longer period for your lock, but in making this choice, will probably have a higher interest rate than you would have with a shorter period
In addition to going with the shorter rate lock period, there are other ways you can attain the lowest rate. The larger the down payment, the better the interest rate will be, as you will be starting with more equity. You may opt to pay points to bring down your interest rate over the loan term, meaning you pay more initially. One strategy that is a good option for many people is to pay points to bring the rate down over the life of the loan. You are paying more initially, but you will come out ahead, especially if you keep the loan for the full term.
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