What is a "rate lock period"?
What is a Rate Lock?
A rate "lock" or "commitment" is a lender's promise to lock in a certain interest rate and a specific number of points for you for a certain period during your application process. This keeps you from working through your entire application process and finding out at the end that the interest rate has gotten higher.
Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer ones generally costing more. You can get a longer period for your lock, but in choosing this option, will likely have a higher interest rate than you would have with a shorter period
Other Interest Saving Strategies
In addition to opting for the shorter rate lock period, there are more ways you may be able to score the best rate. The bigger the down payment, the lower the rate will be, as you will be starting with more equity. You can pay points to reduce your interest rate over the loan term, meaning you pay more up front. For many people, this makes sense and is a good deal..
Saab Mortgage can answer questions about rate lock periods and many others. Call us: 703-288-0777.
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