What is a "rate lock period"?
Lock It In
When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate over a determined period for the application process. This saves you from going through your whole application process and finding out at the end that the interest rate has gone up.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer ones generally costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would have with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
In addition to going with the shorter lock period, there are more ways you are able to get the lowest rate. The larger the down payment, the better your interest rate will be, as you will be starting with more equity. You can pay points to bring down your rate for the loan term, meaning you pay more up front. To many people, this makes financial sense..
American First Bancorp, Inc. can walk you through the pitfalls of getting a mortgage. Give us a call at 330-492-7757.