"Rate Lock" and other Ways to Get a Lower Interest Rate

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Locking It In

When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate for a certain number of days while you work on your application process. This means your interest rate can't rise during the application process.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer ones typically costing more. You can get a longer period for your lock, but in making this choice, will most likely have a higher interest rate than you would have with a shorter period

More Ways to Save on Interest

There are more ways to get a low rate, in addition to choosing a shorter rate lock period. A bigger down payment will get you a better interest rate, because you'll have more equity from the beginning. You can pay points to improve your interest rate for the loan term, meaning you pay more initially. For a lot of people, this makes financial sense..

First Residential Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: (831) 459-6073.