What is a "rate lock period"?

What is a Rate Lock?

A rate "lock" or "commitment" is a promise from the lender to freeze a certain interest rate and a certain number of points for you for a certain period of time while your application is processed. This prevents you from working through your entire application process and finding out at the end that the interest rate has risen higher.

Although there may be a choice of rate lock periods (from 15 to 60 days), the longer ones are typically more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would with a shorter rate lock span of time

More Ways to Save on Interest

There are more ways to get a reduced rate, besides going with a shorter rate lock period. A bigger down payment will give you a lower interest rate, since you'll be starting out with more equity. You might choose to pay points to bring down your rate over the life of the loan, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to bring the rate down over the life of the loan. You will pay more up front, but you will come out ahead in the long run.

At Coleman Mortgage Company, we answer questions about this process every day. Give us a call: 972-932-9083.


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