What is a "rate lock period"?

Locking in your Interest Rate

When you are offered a "rate lock" from your lender, it means that you are guaranteed to get a certain interest rate over a certain number of days for the application process. This means your interest rate won't get higher during the application process.

While there are various lengths of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in making this choice, will likely have a higher interest rate than you would with a shorter span of time

Other Interest Saving Strategies

In addition to going with the shorter lock period, there are several ways you can score the lowest rate. A larger down payment will give you a better interest rate, since you will have more equity from the beginning. You can pay points to lower your rate over the life of the loan, meaning you pay more initially. To many people, this is a good option..

At The Reen Team at American Pacific Mortgage, we answer questions about this process every day. Give us a call: (408) 626-1879.

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