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

Lock It In

When you're promised a "rate lock" from the lender, it means that you are guaranteed to keep a set interest rate over a determined period while you work on your application process. This ensures that your interest rate can't grow as you are going through the application process.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer period typically costing more. You can get a longer period for your lock, but in doing so, will probably have a higher interest rate than you would have with a shorter period

More Ways to Save on Interest

There are other ways to get a good rate, besides going with a shorter rate lock period. A bigger down payment will give you a lower interest rate, since you are starting out with a good deal of equity. You can pay points to lower your interest rate for the loan term, meaning you pay more initially. To many people, this makes financial sense..

1st Credential Mortgage Inc can walk you through the pitfalls of getting a mortgage. Give us a call at 2817780805.