What is a "rate lock period"?

Locking in your Interest Rate

When you're promised a "rate lock" from a lender, it means that you are guaranteed to keep a set interest rate over a determined period while you work on your application process. This means your interest rate will not grow during the application process.

While there are various lengths of rate lock periods (from 15 to 60 days), the extended spans are generally more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher interest rate than you would with a shorter period

Other Interest Saving Strategies

In addition to opting for the shorter lock period, there are more ways you may be able to score the lowest rate. A larger down payment will give you a lower interest rate, because you will have a good amount of equity at the start. You can pay points to improve your rate over the loan term, meaning you pay more initially. To many people, this makes financial sense..

At Riviera Funding NMLS#861382 CA DRE Broker #01186669, we answer questions about this process every day. Call us: 3103737406.

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Riviera Funding NMLS#861382 CA DRE Broker #01186669

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