Getting a Low Interest Rate

What is a Rate Lock?

When you are promised a "rate lock" from your lender, it means that you are guaranteed to get a particular interest rate over a determined period while you work on your application process. This ensures that your interest rate cannot go up during the application process.

While there can be a choice of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. The 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 higher than with a rate lock of a shorter period.

Other Interest Saving Strategies

There are other ways to get a good rate, besides going with a shorter rate lock period. A larger down payment will get you a reduced interest rate, because you'll be starting out with more equity. You may choose to 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. Call us: 2146635355.