Getting a Low Interest Rate

Lock It In

When you're offered a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate for a determined period while you work on the application process. This protects you from going through your whole application process and learning at the end that the interest rate has risen higher.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer period generally costing more. A lending institution may agree to freeze an interest rate and points for a longer span of time, such as sixty days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of fewer days.

Other Interest Saving Strategies

In addition to choosing the shorter lock period, there are more ways you can score the lowest rate. A bigger down payment will get you a better interest rate, since you'll have a good deal of equity from the beginning. You can pay points to bring down your rate over the loan term, meaning you pay more up front. To a lot of people, this is a good option..

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

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