Getting a Low Interest Rate

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What is a Rate Lock?

When you're offered a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a certain number of days while you work on your application process. This ensures that your interest rate cannot rise during the application process.

Although there are various lengths of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. You can get a longer period for your lock, but in making this choice, will likely have a higher interest rate than you would with a shorter rate lock period

More Ways to Save on Interest

In addition to going with a shorter rate lock period, there are other ways you can attain the best rate. A larger down payment will result in a better interest rate, since you'll have a good amount of equity at the start. You can pay points to reduce your rate over the term of the loan, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to reduce the interest rate over the term of the loan. You are paying more initially, but you will come out ahead, especially if you keep the loan for the full term.

Primary Residential Mortgage, Inc can answer questions about rate lock periods and many others. Give us a call at 802-253-2055.