What is a "rate lock period"?
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Lock It In
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 certain period during your application process. This ensures that your interest rate cannot get higher during the application process.
Although there might be a choice 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 probably have a higher interest rate than you would have with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
There are more ways to get a better rate, in addition to opting for a shorter rate lock period. The bigger the down payment, the lower your interest rate will be, as you will have more equity from the beginning. You can pay points to bring down your interest rate for the loan term, meaning you pay more up front. To many people, this makes sense and is a good deal..
Miracles Happen, LLC can answer questions about rate lock periods and many others. Call us at 1-801-399-2364.