What is a "rate lock period"?
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Lock It In
When you're offered a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate over a determined period for the application process. This prevents you from going through your whole application process and discovering at the end that your interest rate has gone up.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer spans generally costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would have with a shorter span of time
Additional Ways to Save on Interest
In addition to opting for the shorter lock period, there are more ways you may be able to attain the lowest rate. A bigger down payment will get you a lower interest rate, since you'll have more equity from the beginning. You can pay points to bring down your rate for the loan term, meaning you pay more initially. To many people, this is a good option..
At Aspen Financial Group, Inc., we answer questions about this process every day. Call us at (303) 369-5033.