What is a "rate lock period"?
Locking It In
A rate "lock" or "commitment" is a lender's promise to lock in a particular interest rate and a specific number of points for you for a specified period of time while your application is processed. This saves you from getting through your entire application process and learning at the end that your interest rate has gone up.
Rate lock periods can vary in length, between 15 to 60 days, with the longer ones typically costing more. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would have with a shorter rate lock period
Other Interest Saving Strategies
There are more ways to get a good rate, in addition to choosing a shorter rate lock period. A bigger down payment will get you a lower interest rate, since you'll have more equity from the beginning. You can pay points to reduce your interest rate for the loan term, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..
Harbor View Lending* a DBA of Megastar Financial can walk you through the pitfalls of getting a mortgage. Give us a call: (207) 571-8034.