What is a "rate lock period"?

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to hold 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 get higher during the application process.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer period typically costing more. You can get a longer period for your lock, but in choosing this option, 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

There are other ways to get a lower rate, besides agreeing to a shorter rate lock period. The larger down payment you can make, the smaller your rate will be, as you will be starting with more equity. You might choose to pay points to lower your interest rate over the term of the loan, meaning you pay more up front. To a lot of people, this makes financial sense..

Firelight Mortgage Consultants can walk you through the pitfalls of getting a mortgage. Call us: 3032282254.

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Firelight Mortgage Consultants

Company NMLS#: 381658

7887 East Belleview Ave Ste 1100
Englewood, CO 80111