What is a "rate lock period"?

Locking It In

When you're offered a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate over a determined period for the application process. This means your interest rate cannot go up during the application process.

Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer spans typically costing more. You can get a longer period for your lock, but in making this choice, will probably have a higher rate than you would have with a shorter span of time

More Ways to Get a Great Interest Rate

In addition to choosing a shorter rate lock period, there are more ways you can attain the lowest rate. A larger down payment will get you a better interest rate, since you're starting out with a good deal of equity. You could choose to pay points to improve your interest rate over the term of the loan, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to improve the rate over the term of the loan. You are paying more initially, but you will come out ahead, especially if you keep the loan for a long time.

U.S.A. Lending, Inc. can answer questions about rate lock periods & many others. Call us: 305-967-7200.