What is a "rate lock period"?
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Lock It In
When you're offered a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate for a determined period while you work on the application process. This protects you from going through your whole application process and learning at the end that the interest rate has gone up.
Although there are various lengths of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. You can get a longer period for your lock, but in doing so, will most likely have a higher interest rate than you would with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
In addition to choosing a shorter rate lock period, there are other ways you can get the best rate. The larger down payment you pay, the lower the rate will be, because you will have more equity from the beginning. You might opt to pay points to reduce your interest 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 improve the interest rate over the term of the loan. You'll pay more initially, but you will come out ahead in the long run.
Seattle Mortgage Brokers LLC can answer questions about rate lock periods & many others. Call us at 206-409-5626 (LOAN) (LOAN).