What is a "rate lock period"? How can you make sure your rate is low?

A rate lock is a lender's promise to hold a certain interest rate and number of points for a specified period of time while your application is processed. This prevents you from going through your application process and then finding the interest rate has gone up.

Rate lock periods vary in length and longer ones usually cost more.

Another way to ensure a low rate is to make a larger down payment. This will result in a lower interest rate because you're starting with more equity.

Finally, the interest rate a lender is willing to offer you depends on your credit score and your debt-to-income ratio. If you have good credit and your income far exceeds your debt obligations, you will qualify for a lower rate.


BroadStreet Financial Group 200 Providence Mine Rd, Ste 110 NEVADA CITY, CA 95959
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