What is a "rate lock period"?

Locking It In

When you are promised a "rate lock" from a lender, it means that you are guaranteed to keep a specific interest rate over a determined period while you work on your application process. This means your interest rate cannot get higher as you are going through the application process.

Although there might 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 doing so, will most likely have a higher interest rate than you would have with a shorter rate lock period

More Ways to Get a Great Interest Rate

In addition to going with a shorter rate lock period, there are other ways you can get the lowest rate. A bigger down payment will get you a better interest rate, since you are starting out with a good deal of equity. You can pay points to bring down your rate for the term of the loan, meaning you pay more up front. One strategy that is a good option for some is to pay points to reduce the interest rate over the life of the loan. You'll pay more up front, but you'll come out ahead, especially if you don't refinance early.

Boardwalk Mortgage can answer questions about rate lock periods and many others. Give us a call: 1-800-606-2794.