What is a "rate lock period"?

What is a Rate Lock?

A rate "lock" or "commitment" is a promise from the lender to hold a particular interest rate and a particular number of points for you for a specified period of time while your application is processed. This means your interest rate will not grow while you are working through the application process.

Although 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 doing so, will likely have a higher interest rate than you would have with a shorter rate lock period

Other Interest Saving Strategies

In addition to choosing the shorter rate lock period, there are several ways you can score the best rate. A bigger down payment will result in a reduced interest rate, because you will have more equity from the beginning. You can pay points to reduce your interest rate for the term of the loan, meaning you pay more initially. To a lot of people, this is a good option..

Atlantic Financial Services can walk you through the pitfalls of getting a mortgage. Give us a call at (732) 969-9300.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question