Getting a Low 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 for your application process. This keeps you from getting through your whole application process and learning at the end that the interest rate has risen higher.
Although there are various 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 choosing this option, will likely have a higher rate than you would with a shorter period
Other Interest Saving Strategies
There are more ways to get a lower rate, in addition to going with a shorter rate lock period. A larger down payment will result in a better interest rate, since you'll be starting out with more equity. You might opt to pay points to improve your rate for the loan term, meaning you pay more up front. To many people, this makes sense and is a good deal..
Prime Capital Mortgage Corp can answer questions about rate lock periods & many others. Give us a call: 248-644-1200.
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