Getting a Low Interest Rate

What is a Rate Lock?

When you are promised a "rate lock" from the lender, it means that you are guaranteed to keep a specific interest rate over a determined period while you work on the application process. This means your interest rate won't rise during the application process.

Although there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. 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 span of time

More Ways to Get a Great Interest Rate

There are other ways to get a low rate, besides opting for a shorter rate lock period. The larger down payment you can pay, the smaller the interest rate will be, because you will have more equity from the start. You might choose to pay points to reduce your rate for the term of the loan, meaning you pay more initially. For a lot of people, this is a good option..

At 1st Credential Mortgage Inc, we answer questions about this process every day. Give us a call at (281) 778-0805.

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