What is a "rate lock period"?

Lock It In

When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate over a determined period for the application process. This means your interest rate won't rise during the application process.

Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in making this choice, will probably have a higher rate than you would have with a shorter span of time

More Ways to Get a Great Interest Rate

There are other ways to get a better rate, in addition to agreeing to a shorter rate lock period. A larger down payment will get you a lower interest rate, since you're starting out with a good deal of equity. You could choose to pay points to reduce your interest rate over the term of the loan, meaning you pay more initially. To many people, this makes sense and is a good deal..

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can answer questions about rate lock periods and many others. Give us a call: (808) 935-0678.