Getting a Low Interest Rate
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Lock It In
When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate for a determined period for the application process. This protects you from getting through your whole application process and finding out at the end that the interest rate has risen higher.
While there are several lengths of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. A lender may agree to lock in an interest rate and points for a longer span of time, say sixty days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of fewer days.
More Ways to Save on Interest
There are other ways to get a low rate, besides opting for a shorter rate lock period. A bigger down payment will give you a lower interest rate, since you'll have more equity at the start. You might opt to pay points to lower your interest rate for the loan term, meaning you pay more up front. For a lot of people, this makes financial sense.
At Liberty Mortgage, we answer questions about this process every day. Call us at 281-542-7392.