"Rate Lock" and other Ways to Get a Lower Interest Rate
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Freezing the Rate
When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a particular interest rate over a determined period while you work on your application process. This means your interest rate can't rise during the application process.
Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in doing so, will likely have a higher rate than you would have with a shorter rate lock period
Additional Ways to Save on Interest
In addition to choosing a shorter rate lock period, there are more ways you can attain the best rate. A bigger down payment will give you a better interest rate, because you are starting out with more equity. You might choose to pay points to lower your interest rate over the loan term, meaning you pay more up front. To a lot of people, this makes sense and is a good deal.
Full Access Mortgage, Inc. (NMLS 1049472) can answer questions about rate lock periods & many others. Call us: (402) 502-9037.