What is a "rate lock period"?

Locking in your Interest Rate

When you are offered a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate for a determined period while you work on your application process. This ensures that your interest rate will not get higher as you are working through the application process.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer ones typically costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would with a shorter period

More Ways to Save on Interest

There are other ways to get a low rate, besides choosing a shorter rate lock period. A bigger down payment will get you a lower interest rate, since you will have a good deal of equity at the start. You can pay points to bring down your rate for the loan term, meaning you pay more initially. For 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. Call us at (808) 935-0678.