What is a "rate lock period"?

Freezing the Rate

A rate "lock" or "commitment" is a promise from the lender to hold 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 can't rise while you are working through the application process.

Although there may be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. A lending institution may agree to hold an interest rate and points for a longer span of time, say sixty days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of fewer days.

More Ways to Save on Interest

In addition to opting for a shorter lock period, there are several ways you may be able to score the lowest rate. The more the down payment, the smaller the rate will be, since you will have more equity from the beginning. You can pay points to improve your rate for the loan term, meaning you pay more up front. For many people, this makes financial sense..

At AmeriBest Mortgage, we answer questions about this process every day. Give us a call: (321) 777-7277.

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Please answer the following questions to the best of your knowledge but it must be accurate in order to compare it to the offer you currently have. We hope to $ave you hundreds if not thousands of dollars over the life of your loan. If we can't than you'll be able to sleep better tonight knowing you got the best deal - today!

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