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

Locking in your Interest Rate

When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a determined period for the application process. This protects you from getting through your whole application process and discovering at the end that your interest rate has risen higher.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer ones usually costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would have with a shorter rate lock period

More Ways to Get a Great Interest Rate

There are more ways to get a better rate, besides agreeing to a shorter rate lock period. The larger the down payment, the smaller the interest rate will be, as you will be starting with more equity. You can pay points to reduce your rate for the loan term, meaning you pay more up front. To a lot of people, this is a good option..

Diamond Mortgage, LLC can walk you through the pitfalls of getting a mortgage. Call us: 3178427744.