Getting a Low Interest Rate
Locking It In
When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a particular interest rate over a certain number of days while you work on your application process. This means your interest rate will not go up while you are going through the application process.
Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer ones typically costing more. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would with a shorter period
Other Ways to Save on Interest
There are more ways to get a good rate, in addition to opting for a shorter rate lock period. A bigger down payment will get you a lower interest rate, since you'll have more equity from the beginning. You may opt to pay points to lower your rate for the loan term, meaning you pay more up front. For many people, this makes financial sense..
Savers Home Loans can answer questions about rate lock periods and many others. Give us a call: (800) 974-0509.