Getting a Low Interest Rate

Lock It In

When you are promised a "rate lock" from a lender, it means that you are guaranteed to keep a specific interest rate for a determined period while you work on your application process. This protects you from going through your entire application process and discovering at the end that your interest rate has gotten higher.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer spans typically costing more. A lender may agree to freeze an interest rate and points for a longer period, such as sixty days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of a shorter period.

More Ways to Get a Great Interest Rate

In addition to choosing the shorter rate lock period, there are several ways you are able to get the best rate. A bigger down payment will result in a reduced interest rate, because you will have a good amount of equity at the start. You may choose to pay points to bring down your interest rate over the term of the loan, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..

1st Credential Mortgage Inc can answer questions about rate lock periods & many others. Give us a call at (281) 778-0805.

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