Getting a Low Interest Rate
Lock It In
When you're offered a "rate lock" from your lender, it means that you are guaranteed to get a specific interest rate over a determined period while you work on the application process. This keeps you from going through your entire application process and finding out at the end that your interest rate has gone up.
While there are several lengths of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. 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 span of time
More Ways to Save on Interest
There are other ways to get a good rate, besides going with a shorter rate lock period. A larger down payment will get you a reduced interest rate, because you are starting out with more equity. You can pay points to bring down your rate for the life of the loan, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to improve the rate over the term of the loan. You'll pay more up front, but you will save money in the long run.
Savers Home Loans can answer questions about rate lock periods & many others. Call us: (800) 974-0509.