What is a "rate lock period"?

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What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to set a certain interest rate and a particular number of points for you for a specified period of time during your application process. This ensures that your interest rate can't grow while you are working through the application process.

Although there can 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 most likely have a higher interest rate than you would with a shorter rate lock span of time

More Ways to Get a Great Interest Rate

There are other ways to get a low rate, in addition to choosing a shorter rate lock period. The larger the down payment, the lower the rate will be, since you will be starting with more equity. You can pay points to reduce your interest rate over the term of the loan, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..

San Diego Financial can walk you through the pitfalls of getting a mortgage. Give us a call: 760-415-2345.