"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking It In
When you are promised a "rate lock" from a lender, it means that you are guaranteed to keep a set interest rate for a determined period while you work on the application process. This ensures that your interest rate can't rise during the application process.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer spans typically costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would have with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
There are other ways to get a lower rate, in addition to going with a shorter rate lock period. The bigger down payment you pay, the better the rate will be, because you will be starting with more equity. You can pay points to bring down your interest rate for the life of the loan, meaning you pay more up front. To many people, this is a good option..
At F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), we answer questions about this process every day. Call us at 214-300-8756.