What is a "rate lock period"?
Locking in your Interest Rate
A rate "lock" or "commitment" is a lender's promise to hold a specific interest rate and a particular number of points for you for a specified period during your application process. This ensures that your interest rate can't go up while you are going through the application process.
While there are various lengths of rate lock periods (from 15 to 60 days), the extended ones are typically more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher interest rate than you would with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
In addition to going with a shorter lock period, there are other ways you can score the lowest rate. A larger down payment will give you a lower interest rate, because you'll be starting out with a good deal of equity. You may opt to pay points to reduce your interest rate over the life of the loan, meaning you pay more up front. To many people, this makes financial sense..
At Primary Residential Mortgage, Inc., we answer questions about this process every day. Call us: 808-585-9888.