Getting a Low Interest Rate
Locking in your Interest Rate
When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a certain interest rate for a determined period while you work on the application process. This keeps you from going through your entire application process and discovering at the end that your interest rate has gone up.
Rate lock periods can vary in length, between 15 to 60 days, with the longer ones typically costing more. 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 span of time
Additional Ways to Save on Interest
There are other ways to get a good rate, besides choosing a shorter rate lock period. The larger down payment you make, the better the interest rate will be, since you will be starting with more equity. You can pay points to bring down your interest rate over the loan term, meaning you pay more up front. To many people, this makes sense and is a good deal..
At Washingtonian Mortgage, LLC, we answer questions about this process every day. Call us: 410-451-2755.