What is a "rate lock period"?

Lock It In

When you are offered a "rate lock" from a lender, it means that you are guaranteed to keep a set interest rate for a determined period for your application process. This ensures that your interest rate won't grow during the application process.

While there may be a choice of rate lock periods (from 15 to 60 days), the extended ones are typically more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would have with a shorter rate lock span of time

Other Interest Saving Strategies

In addition to going with a shorter rate lock period, there are several ways you can get the lowest rate. The larger the down payment, the better the rate will be, since you will be starting with more equity. You can pay points to bring down your interest rate over the life of the loan, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to reduce the rate over the life of the loan. You'll pay more up front, but you'll come out ahead, especially if you keep the loan for the full term.

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