What is a "rate lock period"?
Lock It In
When you are promised a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate for a certain number of days while you work on the application process. This keeps you from working through your whole application process and discovering at the end that your interest rate has gotten higher.
While there can be a choice 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 doing so, will most likely have a higher interest rate than you would with a shorter span of time
More Ways to Get a Great Interest Rate
In addition to opting for the shorter lock period, there are several ways you can get the best rate. A larger down payment will result in a reduced interest rate, since you'll have more equity from the beginning. You can pay points to improve your interest rate for the loan term, meaning you pay more up front. For many people, this makes sense and is a good deal..
U.S.A. Lending, Inc. can walk you through the pitfalls of getting a mortgage. Call us at 305-967-7200.