"Rate Lock" and other Ways to Get a Lower Interest Rate
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Freezing the Rate
A rate "lock" is something you as a customer choose based on the type of loan program and time needed to close your loan. Once your rate is "locked" you are protected against market volatility that could otherwise increase your rate while you are working through the application process.
Although there may be a choice of rate lock periods ranging from 30 to 60 days typically, the longer extended ones are usually more expensive. You only want to get a longer lock if you need it because in making that choice the cost or rate will be more than it would with a shorter span of time
More Ways to Get a Great Interest Rate
In addition to going with a shorter lock period, there are several ways you may be able to score the lowest rate. A bigger down payment will give you a reduced interest rate due to the lower risk of your loan because you will have more equity from the beginning. You can also pay points to lower your rate for the loan term if it makes sound financial sense. All of these are viable options, which our Loan Advisors can assist you with in determining what works best for you.
Guaranty Federal Mortgage can walk you through the pitfalls of getting a mortgage. Call us at 972-334-0566.