Getting a Low Interest Rate
Lock It In
When you are promised a "rate lock" from your lender, it means that you are guaranteed to get a specific interest rate for a determined period while you work on the application process. This ensures that your interest rate can't get higher during the application process.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer ones typically costing more. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would have with a shorter span of time
Other Interest Saving Strategies
There are other ways to get a better rate, in addition to choosing a shorter rate lock period. A larger down payment will result in a reduced interest rate, since you'll have a good deal of equity from the beginning. You can pay points to improve your rate for the term of the loan, meaning you pay more up front. To many people, this is a good option..
At Lear Financial Group LLC.
, we answer questions about this process every day. Call us: 214-869-7339.