What is a "rate lock period"?
Lock It In
A rate "lock" or "commitment" is a promise from the lender to set a certain interest rate and a specific number of points for you for a certain period while your application is processed. This protects you from getting through your whole application process and finding out at the end that your interest rate has gotten higher.
Rate lock periods can vary in length, between 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in doing so, will probably have a higher interest rate than you would have with a shorter span of time
More Ways to Save on Interest
There are other ways to get a good rate, in addition to choosing a shorter rate lock period. The bigger down payment you make, the better the interest rate will be, because you will have more equity from the beginning. You can pay points to improve your rate for the life of the loan, meaning you pay more up front. To many people, this makes sense and is a good deal..
C2 Financial Corporation can answer questions about rate lock periods and many others. Give us a call at (727) 478-2797.
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