What is a "rate lock period"?

Locking It In

When you are promised a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate over a certain number of days while you work on your application process. This means your interest rate will not rise as you are going through the application process.

Rate lock periods can vary in length, between 15 to 60 days, with the longer ones usually costing more. A lending institution will agree to hold an interest rate and points for a longer period, say 60 days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.

More Ways to Save on Interest

In addition to going with the shorter rate lock period, there are other ways you are able to get the best rate. The larger the down payment, the smaller your interest rate will be, because you will have more equity from the beginning. You could choose to pay points to reduce your rate over the life of the loan, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to reduce the interest rate over the term of the loan. You'll pay more up front, but you'll save money, especially if you don't refinance early.

Pacificwide Lending can walk you through the pitfalls of getting a mortgage. Call us: 9254610500.

Basic Pre-Approval

Get the Best Mortgage Rate! Tell us a little about your current needs and we can use that information to match you with just the right loan.

Tell us about your loan needs.
How can we get in touch with you?
Tell us about your credit history.
By checking the box, you agree that Pacificwide Lending may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.

Pacificwide Lending

CA License #01762647 NMLS#241222, TX License #241222, FL License # MBR 3291

7041 Koll Center Pkwy Ste 270 Ste 270
Pleasanton, CA 94566