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 particular interest rate and a specific number of points for you for a specified period of time during your application process. This keeps you from getting through your entire application process and learning at the end that the interest rate has risen higher.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer ones typically costing more. The lending institution will agree to lock in an interest rate and points for a longer period, like sixty days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of fewer days.

More Ways to Get a Great Interest Rate

In addition to choosing the shorter rate lock period, there are several ways you can get the lowest rate. The bigger down payment you can make, the lower your interest rate will be, as you will be starting with more equity. You can pay points to bring down your interest rate for the loan term, meaning you pay more initially. For a lot of people, this makes financial sense..

CHASE MORTGAGE, Inc. #317430 can answer questions about rate lock periods & many others. Give us a call at 4357556622.