"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking It In
When you're offered a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate for a certain number of days while you work on the application process. This ensures that your interest rate won't grow as you are working through the application process.
While there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. You can get a longer period for your lock, but in doing so, will likely have a higher rate than you would have with a shorter period
More Ways to Get a Great Interest Rate
There are more ways to get a reduced rate, in addition to going with a shorter rate lock period. The bigger down payment you pay, the lower the interest rate will be, since you will be entering the loan with more equity. You might opt to pay points to bring down your rate for the loan term, meaning you pay more up front. One strategy that is a good option for many people is to pay points to reduce the rate over the term of the loan. You'll pay more up front, but you will come out ahead, especially if you don't refinance early.
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.