What is a "rate lock period"?
Locking in your Interest Rate
A rate "lock" or "commitment" is a promise from the lender to set a specific interest rate and a certain number of points for you for a certain period while your application is processed. This means your interest rate cannot rise during the application process.
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 doing so, will probably have a higher rate than you would have with a shorter span of time
More Ways to Get a Great Interest Rate
In addition to opting for the shorter rate lock period, there are more ways you are able to attain the lowest rate. The larger the down payment, the better the interest rate will be, as you will be starting with more equity. You could opt to pay points to reduce your interest rate over the term of the loan, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..
C2 Financial Corporation can answer questions about rate lock periods & many others. Give us a call: (727) 478-2797.
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