What is a "rate lock period"?

What is a Rate Lock?

When you are promised a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate for a determined period while you work on your application process. This means your interest rate can't rise during the application process.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer period generally costing more. The lending institution can agree to hold an interest rate and points for a longer period, like sixty days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of fewer days.

More Ways to Get a Great Interest Rate

There are other ways to get a low rate, besides choosing a shorter rate lock period. The more the down payment, the smaller your rate will be, since you will have more equity from the start. You can pay points to lower your rate over the term of the loan, meaning you pay more up front. To many people, this makes financial sense..

AmeriBest Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call at (321) 777-7277.

Got a Quote Elsewhere?

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!

Got a Quote Elsewhere?