What is a "rate lock period"?

Lock It In

A rate "lock" or "commitment" is a promise from the lender to freeze a specific interest rate and a certain number of points for you for a specified period while your application is processed. This means your interest rate won't grow during the application process.

Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer period generally costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would with a shorter period

Other Ways to Save on Interest

There are other ways to get a better rate, in addition to going with a shorter rate lock period. A larger down payment will give you a reduced interest rate, since you're starting out with a good deal of equity. You can pay points to improve your interest rate over the loan term, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..

Pioneer Mortgage Corp can walk you through the pitfalls of getting a mortgage. Give us a call at 7812454924.