"Rate Lock" and other Ways to Get a Lower Interest Rate

What is a Rate Lock?

When you are offered a "rate lock" from your lender, it means that you are guaranteed to keep a certain interest rate over a determined period while you work on your application process. This means your interest rate cannot grow as you are working through the application process.

While there are various lengths of rate lock periods (from 15 to 60 days), the longer ones are usually more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher rate than you would with a shorter period

More Ways to Save on Interest

There are more ways to get a low rate, besides going with a shorter rate lock period. A larger down payment will result in a reduced interest rate, because you'll have more equity from the beginning. You may opt to pay points to lower your interest rate for the life of the loan, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..

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

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