"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
When you are offered a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate for a certain number of days for your application process. This means your interest rate won't grow while you are going through the application process.
Although there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher rate than you would have with a shorter rate lock period
More Ways to Save on Interest
There are other ways to get a reduced rate, in addition to going with a shorter rate lock period. A bigger down payment will result in a lower interest rate, because you're starting out with more equity. You can pay points to bring down your rate over the loan term, meaning you pay more initially. For many people, this makes sense and is a good deal..
Pacific Loan Brokers can walk you through the pitfalls of getting a mortgage. Give us a call at 877-310-6200.
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