"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking It In
When you are offered a "rate lock" from your lender, it means that you are guaranteed to get a specific interest rate over a certain number of days for your application process. This means your interest rate can't go up while you are working through the application process.
Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer ones typically costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would with a shorter rate lock span of time
More Ways to Save on Interest
There are other ways to get a low rate, besides opting for a shorter rate lock period. A bigger down payment will get you a reduced interest rate, because you will be starting out with more equity. You could opt to pay points to reduce your interest rate over the life of the loan, meaning you pay more initially. For a lot of people, this makes financial sense..
Equity Edge Mortgage, Inc. can answer questions about rate lock periods and many others. Give us a call: 719-425-2226.