Getting a Low Interest Rate
Lock It In
When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a particular interest rate over a determined period for your application process. This ensures that your interest rate can't get higher during the application process.
Rate lock periods can vary in length, 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 probably have a higher interest rate than you would with a shorter period
Other Ways to Save on Interest
In addition to choosing a shorter lock period, there are other ways you may be able to get the lowest rate. A bigger down payment will result in a reduced interest rate, since you're starting out with a good deal of equity. You can pay points to reduce your interest rate over the loan term, meaning you pay more initially. For a lot of people, this makes sense and is a good deal..
Equity Edge Mortgage, Inc. can answer questions about rate lock periods and many others. Call us at 719-425-2226.