What is a "rate lock period"?

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to lock in a certain interest rate and a particular number of points for you for a specified period while your application is processed. This ensures that your interest rate can't go up while you are going through the application process.

Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would with a shorter span of time

Additional Ways to Save on Interest

There are other ways to get a better rate, besides opting for a shorter rate lock period. The larger the down payment, the lower your rate will be, since 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. One strategy that is a good option for many people is to pay points to improve the rate over the life of the loan. You'll pay more up front, but you'll save money, especially if you don't refinance early.

At Hawk Mortgage Group, we answer questions about this process every day. Call us at (443) 619-7900.

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