What is a "rate lock period"?

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Lock It In

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

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

More Ways to Get a Great Interest Rate

There are more ways to get a low rate, in addition to going with a shorter rate lock period. A bigger down payment will get you a lower interest rate, because you will have a good amount of equity from the beginning. You can pay points to lower your interest rate for the loan term, meaning you pay more up front. For many people, this makes sense and is a good deal..

At Anita Martinez-Trumm, we answer questions about this process every day. Give us a call at 303-596-8672.