Rate Lock Period

LOCKING IN TO A RATE LOCK PERIOD

It’s a common question: “What if loan interest rates go up while my application is pending?” The answer is, it won’t.

A “rate lock period” is customary while we’re processing your information. It’s a lender’s promise to hold a certain interest rate and points for a specified amount of time, preventing customers from following the application process from start to finish, only to be surprised with an interest rate higher than they’d applied for.

At Giving Tree Lending, the average rate lock period lasts for 60 days.

Another question we’re asked is, “How can I lock into a low interest rate?” Some ways include:

  • Making a larger down payment up front
  • Pay mortgage points over the life of your loan
  • Pay closing costs at your loan’s closing

Most importantly, your interest rate largely depends on your credit score and debt-to-income ratio. If you have good credit, and your income exceeds your debt obligations, you’re more likely to qualify for a lower rate, making your mortgage affordable, and your new home purchase the best investment of a lifetime.