"Rate Lock" and other Ways to Get a Lower Interest Rate

Locking in your Interest Rate

When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a certain number of days for the application process. This means your interest rate won't grow during the application process.

Although there may be a choice of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. The lender can agree to hold an interest rate and points for a longer period, say sixty days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of a shorter period.

Other Ways to Save on Interest

In addition to opting for a shorter rate lock period, there are other ways you can get the best rate. A larger down payment will give you a lower interest rate, since you will have a good deal of equity from the beginning. You might opt to pay points to reduce your interest rate for the term of the loan, meaning you pay more initially. To many people, this makes financial sense..

1st Credential Mortgage Inc can answer questions about rate lock periods & many others. Give us a call at 2817780805.