What is a "rate lock period"?

What is a Rate Lock?

When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a certain interest rate for a determined period while you work on the application process. This keeps you from going through your entire application process and finding out at the end that your interest rate has risen higher.

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

More Ways to Get a Great Interest Rate

There are more ways to get a better rate, in addition to choosing a shorter rate lock period. A larger down payment will result in a better interest rate, since you will be starting out with more equity. You can pay points to bring down your rate over the loan term, meaning you pay more initially. For many people, this makes financial sense.