"Rate Lock" and other Ways to Get a Lower Interest Rate
Lock It In
When you're offered a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate over a certain number of days while you work on the application process. This ensures that your interest rate will not grow during the application process.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period generally costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would have with a shorter rate lock span of time
Other Interest Saving Strategies
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 better interest rate, since you're starting out with a good deal of equity. You can pay points to reduce your rate for the life of the loan, meaning you pay more up front. For a lot of people, this makes financial sense..
Financial Edge Mortgage Corp. can answer questions about rate lock periods & many others. Give us a call at 425-508-9988.
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