What is a "rate lock period"?
Locking It In
When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate over a determined period for your application process. This means your interest rate cannot go up during the application process.
Although there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would have with a shorter period
Other Ways to Save on Interest
There are other ways to get a better rate, besides opting for a shorter rate lock period. A larger down payment will give you a reduced interest rate, because you will have a good amount of equity at the start. You can pay points to improve your interest rate for the loan term, meaning you pay more initially. To many people, this is a good option..
U.S.A. Lending, Inc. can walk you through the pitfalls of getting a mortgage. Call us: 305-967-7200.