What is a "rate lock period"?
What is a Rate Lock?
A rate "lock" or "commitment" is a lender's promise to freeze a certain interest rate and a specific number of points for you for a certain period during your application process. This means your interest rate will not rise as you are going through the application process.
While there might be a choice 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 making this choice, will probably have a higher interest rate than you would have with a shorter period
More Ways to Get a Great Interest Rate
There are other ways to get a good rate, besides going with a shorter rate lock period. A larger down payment will get you a better interest rate, because you will have more equity at the start. You can pay points to lower your interest rate for the loan term, meaning you pay more up front. For many people, this makes financial sense..
U.S.A. Lending, Inc. can answer questions about rate lock periods & many others. Give us a call: 305-967-7200.