Getting a Low Interest Rate
Freezing the Rate
When you are promised a "rate lock" from the lender, it means that you are guaranteed to get a particular interest rate for a determined period for the application process. This means your interest rate will not go up while you are working through the application process.
Rate lock periods can vary in length, between 15 to 60 days, with the longer spans typically costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher interest rate than you would have with a shorter span of time
Other Interest Saving Strategies
In addition to opting for the shorter rate lock period, there are several ways you are able to score the lowest rate. A larger down payment will result in a better interest rate, because you will have more equity at the start. You could choose to pay points to lower your interest rate for the loan term, meaning you pay more up front. To many people, this makes financial sense..
Carter Financial Solutions can answer questions about rate lock periods & many others. Give us a call at 866-840-8745 x2.