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 lock in a certain interest rate and a certain number of points for you for a certain period during your application process. This means your interest rate won't grow as you are working through the application process.
Although there may be a choice of rate lock periods (from 15 to 60 days), the longer ones are generally more expensive. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would have with a shorter span of time
More Ways to Save on Interest
In addition to choosing a shorter rate lock period, there are several ways you may be able to get the best rate. A bigger down payment will get you a reduced interest rate, since you are starting out with a good deal of equity. You can pay points to improve your rate over the term of the loan, meaning you pay more up front. To many people, this makes sense and is a good deal..
Sierra View Financial Corp can walk you through the pitfalls of getting a mortgage. Call us at 916-989-6222.