"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
When you're promised a "rate lock" from your lender, it means that you are guaranteed to get a certain interest rate over a certain number of days for the application process. This saves you from working through your entire application process and finding out 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 usually costing more. You can get a longer period for your lock, but in making this choice, will probably have a higher rate than you would with a shorter span of time
More Ways to Save on Interest
In addition to choosing the shorter lock period, there are several ways you can get the lowest rate. A larger down payment will get you a better interest rate, since you are starting out with a good deal of equity. You may opt to pay points to lower your rate for the term of the loan, meaning you pay more up front. To many people, this makes financial sense..
Cal Coast Financial Corp can walk you through the pitfalls of getting a mortgage. Give us a call: (510) 683-9850.
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