What is a "rate lock period"?

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What is a Rate Lock?

When you are offered a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate for a determined period while you work on your application process. This means your interest rate won't get higher during the application process.

While there are various lengths of rate lock periods (from 15 to 60 days), the longer spans are typically more expensive. You can get a longer period for your lock, but in making this choice, will probably 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 reduced rate, besides going with a shorter rate lock period. The more the down payment, the lower your rate will be, because you will be entering the loan with more equity. You can pay points to improve your interest rate over the life of the loan, meaning you pay more up front. To many people, this makes financial sense..

At The First Mortgage Corporation, Tom answers questions about this process every day. Call him at 1-708-647-5240.