"Rate Lock" and other Ways to Get a Lower Interest Rate
Lock It In
When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate for a determined period for your application process. This saves you from working through your entire application process and learning at the end that the interest rate has risen higher.
Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer ones generally costing more. 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 span of time
Additional Ways to Save on Interest
In addition to opting for a shorter rate lock period, there are other ways you are able to attain the best rate. A larger down payment will result in a better interest rate, because you'll be starting out with more equity. You can pay points to improve your interest rate for the loan term, meaning you pay more up front. To a lot of people, this is a good option..
Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 can answer questions about rate lock periods & many others. Give us a call: 2146635355.