What is a "rate lock period"?
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Locking in your Interest Rate
A rate "lock" or "commitment" is a promise from the lender to freeze a specific interest rate and a specific number of points for you for a specified period of time during your application process. This saves you from working through your entire application process and discovering at the end that the interest rate has risen higher.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer period 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 with a shorter period
Other Ways to Save on Interest
In addition to going with the shorter lock period, there are more ways you are able to attain the best rate. The larger down payment you make, the lower your rate will be, as you will be entering the loan with more equity. You might opt to pay points to bring down your interest rate over the life of the loan, meaning you pay more initially. For many people, this is a good option.
Mortgages, Inc. / NMLS# 1726 can walk you through the pitfalls of getting a mortgage. Call us at 781-273-3912.