Getting a Low Interest Rate

Locking It In

When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate for a certain number of days for the application process. This ensures that your interest rate can't go up during the application process.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period generally costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher interest rate than you would with a shorter period

Other Interest Saving Strategies

There are more ways to get a good rate, in addition to going with a shorter rate lock period. A bigger down payment will result in a reduced interest rate, because you will have more equity from the beginning. You could choose to pay points to bring down your interest rate for the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to improve the interest rate over the term of the loan. You pay more up front, but you'll save money, especially if you keep the loan for a long time.

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

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