Getting a Low Interest Rate
Locking in your Interest Rate
When you are promised a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate over a determined period while you work on the application process. This means your interest rate can't go up during the application process.
Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer period usually costing more. A lender can agree to hold an interest rate and points for a longer span of time, such as 60 days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of a shorter period.
More Ways to Get a Great Interest Rate
There are more ways to get a lower rate, besides going with a shorter rate lock period. The bigger the down payment, the better the interest rate will be, as you will be starting with more equity. You may choose to pay points to bring down your rate for the loan term, meaning you pay more up front. To many 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.