What is a "rate lock period"?
Locking in your Interest Rate
When you're offered a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate for a determined period for your application process. This means your interest rate will not grow as you are going through the application process.
Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would with a shorter rate lock period
More Ways to Get a Great Interest Rate
There are other ways to get a reduced rate, in addition to agreeing to a shorter rate lock period. The larger down payment you can make, the smaller your rate will be, because you will have more equity from the start. You can pay points to reduce your rate over the loan term, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to bring the rate down over the life of the loan. You pay more up front, but you'll come out ahead in the long run.
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can walk you through the pitfalls of getting a mortgage. Call us: 214-300-8756.