What is a "rate lock period"?
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Freezing the Rate
A rate "lock" or "commitment" is a promise from the lender to freeze a particular interest rate and a certain number of points for you for a specified period of time while your application is processed. This prevents you from working through your entire application process and learning at the end that your interest rate has risen higher.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would with a shorter rate lock period
Additional Ways to Save on Interest
In addition to going with a shorter rate lock period, there are more ways you are able to attain the best rate. The bigger the down payment, the lower your interest rate will be, as you will be starting with more equity. You can pay points to bring down your rate for the life of the loan, meaning you pay more up front. For many people, this makes financial sense..
American Pacific Mortgage can answer questions about rate lock periods & many others. Give us a call at (209) 357-7000.