What is a "rate lock period"?

Locking in your Interest Rate

A rate "lock" or "commitment" is a promise from the lender to freeze a specific interest rate and a specific number of points for you for a specified period of time during your application process. This keeps you from working through your whole application process and discovering at the end that your interest rate has risen higher.

While there are several lengths of rate lock periods (from 15 to 60 days), the extended 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

Additional Ways to Save on Interest

In addition to going with the shorter lock period, there are other ways you can score the lowest rate. A larger down payment will result in a better interest rate, because you'll have a good amount of equity from the beginning. You can pay points to improve your rate for the loan term, meaning you pay more up front. To a lot of people, this is a good option..

At Lighthouse Mortgage Company, we answer questions about this process every day. Give us a call: 9164348915.

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