What is a "rate lock period"?
Lock It In
When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate for a certain number of days for your application process. This protects you from working through your entire application process and discovering at the end that your interest rate has risen higher.
Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would with a shorter period
Additional Ways to Save on Interest
In addition to opting for the shorter lock period, there are other ways you can get the best rate. The bigger the down payment, the lower the rate will be, because you will have more equity from the beginning. You may opt to pay points to lower your rate for the life of the loan, meaning you pay more up front. One strategy that is a good option for many people is to pay points to reduce the rate over the term of the loan. You'll pay more up front, but you will come out ahead in the end.
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can walk you through the pitfalls of getting a mortgage. Give us a call: 214-300-8756.