What is a "rate lock period"?

Freezing the Rate

When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate over a certain number of days while you work on the application process. This ensures that your interest rate won't go up while you are going through the application process.

While there can 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 choosing this option, will likely have a higher interest rate than you would have with a shorter span of time

More Ways to Get a Great Interest Rate

In addition to choosing the shorter lock period, there are more ways you are able to attain the best rate. A bigger down payment will result in a reduced interest rate, since you are starting out with a good deal of equity. You can pay points to reduce your interest rate for the loan term, meaning you pay more up front. To many people, this makes financial sense..

Augusta Mortgage Solutions can walk you through the pitfalls of getting a mortgage. Call us: 706-860-5514.

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