Getting a Low Interest Rate

Locking It In

When you are offered a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a certain number of days while you work on your application process. This saves you from getting through your entire application process and discovering at the end that your interest rate has risen higher.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer period usually costing more. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would with a shorter period

Additional Ways to Save on Interest

In addition to choosing a shorter lock period, there are more ways you are able to score the best rate. A bigger down payment will result in a better interest rate, because you are starting out with more equity. You can pay points to reduce your interest rate over the loan term, meaning you pay more up front. One strategy that is a good option for many people is to pay points to bring the rate down over the term of the loan. You will pay more initially, but you'll save money, especially if you don't refinance early.

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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