What is a "rate lock period"?

Locking It In

A rate "lock" or "commitment" is a lender's promise to lock in a particular interest rate and a certain number of points for you for a specified period while your application is processed. This saves you from working through your entire application process and discovering at the end that the interest rate has gotten higher.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period generally costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would with a shorter rate lock period

More Ways to Save on Interest

In addition to choosing the shorter lock period, there are other ways you can score the best rate. The larger down payment you pay, the lower your rate will be, since you will have more equity from the start. You can pay points to lower your rate over the life of the loan, meaning you pay more initially. To many 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: (808) 935-0678.