Getting a Low Interest Rate

Freezing the Rate

When you're offered a "rate lock" from your lender, it means that you are guaranteed to keep a particular interest rate over a determined period for your application process. This protects you from getting through your whole application process and finding out at the end that the interest rate has gone up.

While there are several lengths of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. A lending institution will agree to hold an interest rate and points for a longer span of time, such as 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

In addition to opting for the shorter rate lock period, there are several ways you can get the lowest rate. The larger down payment you can make, the lower the interest rate will be, since you will be entering the loan with more equity. You might choose to pay points to bring down your rate for the loan term, meaning you pay more initially. To many people, this is a good option..

At 1st Credential Mortgage Inc, we answer questions about this process every day. Call us: 2817780805.