"Rate Lock" and other Ways to Get a Lower Interest Rate
Searching for mortgage advice? We can help! Give us a call at 440-934-2100. Want to get started? Apply Now
Locking It In
When you're offered a "rate lock" from a lender, it means that you are guaranteed to keep a specific interest rate for a certain number of days while you work on the application process. This ensures that your interest rate will not rise during the application process.
While there may be a choice of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would have with a shorter span of time
Other Ways to Save on Interest
In addition to opting for the shorter lock period, there are more ways you can get the best rate. The bigger down payment you make, the better the rate will be, since you will be starting with more equity. You might opt to pay points to reduce your interest rate for the life of the loan, meaning you pay more up front. For a lot of people, this is a good option..
At Gold Medal Mortgage, Inc., we answer questions about this process every day. Give us a call: 440-934-2100.