Getting a Low Interest Rate
What is a Rate Lock?
When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate for a determined period for your application process. This means your interest rate cannot go up as you are working through the application process.
While there are several lengths 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 doing so, will most likely have a higher rate than you would with a shorter period
Other Interest Saving Strategies
There are more ways to get a better rate, in addition to choosing a shorter rate lock period. A bigger down payment will give you a reduced interest rate, since you are starting out with more equity. You may choose to pay points to reduce your interest rate over the life of the loan, meaning you pay more up front. To a lot of people, this makes financial sense..
At Coastal Mortgage Corp., we answer questions about this process every day. Give us a call: 504-866-5626.
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