Getting a Low Interest Rate

What is a Rate Lock?

When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate over a certain number of days for your application process. This protects you from getting through your entire application process and discovering at the end that your interest rate has gone up.

Rate lock periods can vary in length, between 15 to 60 days, with the longer ones typically costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would have with a shorter rate lock period

More Ways to Get a Great Interest Rate

In addition to going with a shorter lock period, there are several ways you can score the lowest rate. The bigger down payment you make, the smaller your interest rate will be, since you will have more equity from the start. You can pay points to bring down your interest rate for the term of the loan, meaning you pay more up front. One strategy that is a good option for some is to pay points to improve the rate over the term of the loan. You'll pay more initially, but you'll save money in the end.

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

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