"Rate Lock" and other Ways to Get a Lower Interest Rate
What is a Rate Lock?
When you're offered a "rate lock" from the lender, it means that you are guaranteed to keep a specific interest rate for a determined period for your application process. This keeps you from going through your entire application process and learning at the end that the interest rate has gotten higher.
While there can be a choice of rate lock periods (from 15 to 60 days), the extended ones are typically more expensive. You can get a longer period for your lock, but in making this choice, will probably have a higher rate than you would with a shorter span of time
Other Interest Saving Strategies
In addition to opting for a shorter rate lock period, there are several ways you can get the best rate. The bigger the down payment, the better your interest rate will be, because you will have more equity from the start. You can pay points to improve your rate for the life of the loan, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..
Pioneer Mortgage Corp can answer questions about rate lock periods & many others. Call us at 781-245-4924.