Getting a Low Interest Rate
Lock It In
When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate over a certain number of days while you work on the application process. This keeps you from getting through your whole application process and discovering at the end that the interest rate has risen higher.
Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer spans typically costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would have with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
In addition to going with a shorter lock period, there are other ways you are able to score the lowest rate. The larger the down payment, the smaller your rate will be, as you will have more equity from the start. You might choose to pay points to lower your interest rate over the life of the loan, meaning you pay more up front. To many people, this makes sense and is a good deal..
At Prime Capital Mortgage Corp, we answer questions about this process every day. Call us: 248-644-1200.
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