Getting a Low Interest Rate
Locking It In
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 your application process. This ensures that your interest rate can't get higher while you are working through the application process.
While there may be a choice of rate lock periods (from 15 to 60 days), the extended spans are generally more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would with a shorter span of time
More Ways to Get a Great Interest Rate
There are more ways to get a good rate, besides going with a shorter rate lock period. A bigger down payment will get you a lower interest rate, because you'll have more equity at the start. You may opt to pay points to reduce your interest rate for the loan term, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to bring the rate down over the life of the loan. You are paying more initially, but you will save money, especially if you don't refinance early.
At Hancock Mortgage Partners, LLC NMLS# 229844, we answer questions about this process every day. Give us a call at 225 819 7670.