What is a "rate lock period"?

Locking in your Interest Rate

A rate "lock" or "commitment" is a promise from the lender to lock in a certain interest rate and a certain number of points for you for a certain period of time during your application process. This ensures that your interest rate will not rise during the application process.

While there are several lengths of rate lock periods (from 15 to 60 days), the longer ones are generally more expensive. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would with a shorter rate lock span of time

Other Interest Saving Strategies

In addition to going with a shorter rate lock period, there are several ways you can attain the lowest rate. A larger down payment will get you a better interest rate, because you'll have a good amount of equity from the beginning. You can pay points to improve your rate for the life of the loan, meaning you pay more initially. For many people, this makes sense and is a good deal..

Firelight Mortgage Consultants can walk you through the pitfalls of getting a mortgage. Call us at (303) 228-2254.

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