"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking in your Interest Rate
When you're offered a "rate lock" from your lender, it means that you are guaranteed to get a specific interest rate over a certain number of days for your application process. This means your interest rate will not rise during the application process.
Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer ones generally costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would have with a shorter span of time
More Ways to Get a Great Interest Rate
There are more ways to get a better rate, in addition to opting for a shorter rate lock period. A bigger down payment will get you a better interest rate, because you will have more equity at the start. You can pay points to bring down your rate over the term of the loan, meaning you pay more up front. To many people, this makes sense and is a good deal..
Universal Lending Services, Inc. can walk you through the pitfalls of getting a mortgage. Give us a call at (337) 264-9990.
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