Getting a Low Interest Rate

Locking in your Interest Rate

When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate for a certain number of days for your application process. This ensures that your interest rate cannot get higher while you are going through the application process.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer spans typically costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would have with a shorter span of time

More Ways to Get a Great Interest Rate

In addition to going with the shorter lock period, there are other ways you are able to attain the best rate. A bigger down payment will give you a reduced interest rate, because you'll have a good amount of equity from the beginning. You might choose to pay points to reduce your interest rate for the term of the loan, meaning you pay more initially. One strategy that is a good option for many people is to pay points to bring the rate down over the life of the loan. You are paying more up front, but you will come out ahead in the long run.

1st Credential Mortgage Inc can walk you through the pitfalls of getting a mortgage. Give us a call at (281) 778-0805.

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