"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking in your Interest Rate
When you are offered a "rate lock" from a lender, it means that you are guaranteed to keep a certain interest rate over a certain number of days while you work on your application process. This keeps you from getting through your entire application process and learning at the end that your interest rate has gone up.
Although there are various lengths of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher interest rate than you would with a shorter period
Other Interest Saving Strategies
There are other ways to get a better rate, besides going with a shorter rate lock period. A larger down payment will get you a lower interest rate, because you will have more equity from the beginning. You can pay points to reduce your rate for the loan term, meaning you pay more up front. To a lot of people, this makes financial sense..
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can answer questions about rate lock periods & many others. Give us a call at 214-300-8756.