"Rate Lock" and other Ways to Get a Lower Interest Rate
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Locking It In
When you are offered a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate over a determined period while you work on your application process. This means your interest rate can't rise while you are going through the application process.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer ones generally costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher interest rate than you would with a shorter span of time
Other Interest Saving Strategies
There are more ways to get a reduced rate, besides going with a shorter rate lock period. The larger down payment you pay, the lower your interest rate will be, as you will have more equity from the beginning. You can pay points to improve your interest rate over the term of the loan, meaning you pay more initially. For many people, this makes financial sense.
Elite Financing Group can answer questions about rate lock periods and many others. Call us at .