Getting a Low Interest Rate
Lock It In
When you're offered a "rate lock" from your lender, it means that you are guaranteed to get a particular interest rate over a certain number of days for your application process. This saves you from working through your entire application process and learning at the end that the interest rate has gone up.
Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would with a shorter period
Other Interest Saving Strategies
There are more ways to get a lower rate, besides going with a shorter rate lock period. A bigger down payment will give you a reduced interest rate, because you'll have a good amount of equity from the beginning. You can pay points to lower your rate for the term of the loan, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..
Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 can answer questions about rate lock periods and many others. Call us: 214-663-5355.