"Rate Lock" and other Ways to Get a Lower Interest Rate
What is a Rate Lock?
When you're offered a "rate lock" from your lender, it means that you are guaranteed to keep a particular interest rate for a certain number of days for the application process. This ensures that your interest rate cannot rise during the application process.
While there may be a choice of rate lock periods (from 15 to 60 days), the longer ones are typically more expensive. You can get a longer period for your lock, but in choosing this option, will probably have a higher interest rate than you would with a shorter period
More Ways to Save on Interest
In addition to going with the shorter lock period, there are other ways you are able to attain the best rate. A larger down payment will give you a better interest rate, because you'll have more equity at the start. You could choose to pay points to lower your rate for the term of the loan, meaning you pay more up front. To many people, this makes financial sense..
Savers Home Loans can walk you through the pitfalls of getting a mortgage. Give us a call: (800) 974-0509.