Getting a Low Interest Rate
Lock It In
When you are promised a "rate lock" from your lender, it means that you are guaranteed to get a specific interest rate over a certain number of days for your application process. This means your interest rate will not get higher during the application process.
While there may be a choice of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. A lender may agree to freeze an interest rate and points for a longer span of time, say sixty days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of fewer days.
Other Interest Saving Strategies
There are more ways to get a lower rate, besides choosing a shorter rate lock period. The bigger down payment you can pay, the better the rate will be, because you will have more equity from the beginning. You can pay points to bring down your interest rate over the loan term, meaning you pay more up front. For many people, this is a good option..
MGM Mortgage Inc. can answer questions about rate lock periods and many others. Give us a call: 800-555-6144.