What is a "rate lock period"?

Freezing the Rate

When you're promised a "rate lock" from the lender, it means that you are guaranteed to keep a certain interest rate for a certain number of days while you work on your application process. This means your interest rate can't get higher while you are working through the application process.

Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher interest rate than you would with a shorter period

Other Ways to Save on Interest

In addition to going with a shorter rate lock period, there are more ways you may be able to attain the best rate. The more the down payment, the better your rate will be, because you will have more equity from the beginning. You can pay points to improve your interest rate for the loan term, meaning you pay more up front. For many people, this makes financial sense..

Cornerstone Home Mortgage can answer questions about rate lock periods & many others. Call us at 360-570-0106.

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