What is a "rate lock period"?
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Lock It In
A rate "lock" or "commitment" is a promise from the lender to lock in a specific interest rate and a specific number of points for you for a specified period during your application process. This saves you from going through your entire application process and learning at the end that the interest rate has gone up.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period typically costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would have with a shorter span of time
More Ways to Save on Interest
There are more ways to get a low rate, besides agreeing to a shorter rate lock period. The bigger the down payment, the lower the interest rate will be, since you will be starting with more equity. You can pay points to bring down your rate over the term of the loan, meaning you pay more initially. One strategy that is a good option for some is to pay points to bring the rate down over the life of the loan. You'll pay more initially, but you'll save money, especially if you keep the loan for a long time.
Am1st Financial can walk you through the pitfalls of getting a mortgage. Call us at 872-222-6178.