Getting a Low Interest Rate
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Lock It In
When you're offered a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate for a certain number of days for the application process. This keeps you from getting through your whole application process and learning at the end that the interest rate has risen higher.
Rate lock periods can vary in length, between 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would have with a shorter span of time
More Ways to Get a Great Interest Rate
There are other ways to get a good rate, besides choosing a shorter rate lock period. The bigger the down payment, the smaller the rate will be, since you will be entering the loan with more equity. You can pay points to lower your interest rate for the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to reduce the rate over the term of the loan. You'll pay more up front, but you will come out ahead, especially if you don't refinance early.
Pinnacle Lending Group inc can answer questions about rate lock periods & many others. Call us at 480-442-3949.