"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
When you are promised a "rate lock" from a lender, it means that you are guaranteed to keep a particular interest rate for a determined period while you work on the application process. This ensures that your interest rate cannot get higher while you are working through the application process.
Rate lock periods can vary in length, between 15 to 60 days, with the longer ones generally costing more. You can get a longer period for your lock, but in choosing this option, will likely have a higher interest rate than you would have with a shorter span of time
Other Interest Saving Strategies
There are more ways to get a better rate, in addition to agreeing to a shorter rate lock period. The larger down payment you can make, the better your interest rate will be, because you will have more equity from the start. You can pay points to bring down your interest rate for the term of the loan, meaning you pay more initially. To a lot of people, this is a good option..
Lear Financial Group LLC.
can walk you through the pitfalls of getting a mortgage. Give us a call at 214-869-7339.