"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking It In
When you are 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 the application process. This ensures that your interest rate can't get higher as you are going through the application process.
Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer ones usually costing more. A lending institution may agree to hold an interest rate and points for a longer span of time, say 60 days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of fewer days.
More Ways to Get a Great Interest Rate
In addition to choosing the shorter rate lock period, there are several ways you are able to get the best rate. The larger down payment you can make, the lower your interest rate will be, because you will be entering the loan with more equity. You may choose to pay points to improve your rate over the loan term, meaning you pay more initially. To many people, this is a good option..
Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 can walk you through the pitfalls of getting a mortgage. Give us a call: 2146635355.