Getting a Low Interest Rate
Locking It In
When you are offered a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate for a certain number of days for your application process. This ensures that your interest rate will not rise during the application process.
Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer spans usually costing more. You can get a longer period for your lock, but in making this choice, will probably have a higher rate than you would have with a shorter span of time
More Ways to Get a Great Interest Rate
There are other ways to get a reduced rate, in addition to opting for a shorter rate lock period. The larger down payment you can pay, the lower the rate will be, as you will have more equity from the start. You could choose to pay points to bring down your rate over the loan term, meaning you pay more up front. For many people, this makes sense and is a good deal..
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can answer questions about rate lock periods & many others. Give us a call: 214-300-8756.