What is a "rate lock period"?

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to lock in a certain interest rate and a specific number of points for you for a specified period of time during your application process. This means your interest rate won't get higher during the application process.

Although there are several lengths of rate lock periods (from 15 to 60 days), the longer ones are typically more expensive. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would with a shorter span of time

Additional Ways to Save on Interest

In addition to going with a shorter rate lock period, there are other ways you are able to attain the best rate. The bigger down payment you pay, the better the interest rate will be, since you will have more equity from the beginning. You might choose to pay points to bring down 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..

Nationwide Home Loans can answer questions about rate lock periods and many others. Call us at 5626935048.

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Nationwide Home Loans

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16211 Whittier Blvd.
Whittier, CA 90603