What is a "rate lock period"?

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What is a Rate Lock?

A rate "lock" or "commitment" is a promise from the lender to freeze a particular interest rate and a specific number of points for you for a certain period of time during your application process. This prevents you from going through your whole application process and finding out at the end that your interest rate has gotten higher.

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

More Ways to Get a Great Interest Rate

There are more ways to get a better rate, in addition to agreeing to a shorter rate lock period. A bigger down payment will result in a lower interest rate, because you're starting out with a good deal of equity. You might choose to pay points to improve your rate over the life of the loan, meaning you pay more initially. To a lot of people, this is a good option..

Main Line National Mtg Inc can walk you through the pitfalls of getting a mortgage. Call us at (610) 296-3600.