What is a "rate lock period"?
Locking in your Interest Rate
A rate "lock" or "commitment" is a lender's promise to set a certain interest rate and a certain number of points for you for a specified period of time while your application is processed. This ensures that your interest rate can't get higher during the application process.
While there might be a choice of rate lock periods (from 15 to 60 days), the longer ones are usually more expensive. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would with a shorter rate lock period
More Ways to Get a Great Interest Rate
There are other ways to get a lower rate, in addition to going with a shorter rate lock period. The bigger down payment you can make, the better the rate will be, since you will have more equity from the start. You can pay points to improve your rate over the loan term, meaning you pay more initially. For a lot of people, this is a good option..
Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you through the pitfalls of getting a mortgage. Give us a call at (808) 935-0678.
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