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

Locking in your Interest Rate

When you are offered a "rate lock" from a lender, it means that you are guaranteed to keep a certain interest rate for a determined period while you work on the application process. This ensures that your interest rate will not rise during the application process.

Although there may be a choice of rate lock periods (from 15 to 60 days), the extended ones are usually more expensive. The lending institution may agree to hold an interest rate and points for a longer span of time, like sixty days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of a shorter period.

Other Interest Saving Strategies

In addition to choosing a shorter rate lock period, there are other ways you can attain the best rate. The bigger down payment you can pay, the better the rate will be, as you will be entering the loan with more equity. You might opt to pay points to lower your interest rate over the loan term, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..

Augusta Mortgage Solutions can walk you through the pitfalls of getting a mortgage. Give us a call: 7068605514.

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Augusta Mortgage Solutions

NMLS#:148529 GA Residential Mortgage Licensee #18861

141 North Belair Road Suite 102 NMLS# 149807
Evans, GA 30809-7431