"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking It In
When you're offered a "rate lock" from your lender, it means that you are guaranteed to get a set interest rate over a certain number of days for the application process. This prevents you from working through your entire 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 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 likely have a higher rate than you would with a shorter rate lock span of time
Other Interest Saving Strategies
In addition to going with the shorter rate lock period, there are more ways you are able to attain the best rate. A larger down payment will result in a reduced interest rate, since you'll have a good deal of equity at the start. You may opt to pay points to improve your interest rate for the life of the loan, 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 walk you through the pitfalls of getting a mortgage. Give us a call at 214-300-8756.