Getting a Low Interest Rate
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Freezing the Rate
When you are promised a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate for a certain number of days for the application process. This saves you from working through your whole application process and finding out at the end that the interest rate has gone up.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer spans typically costing more. You can get a longer period for your lock, but in making this choice, will probably 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 opting for the shorter rate lock period, there are several ways you may be able to get the best rate. The more the down payment, the better the rate will be, since you will have more equity from the beginning. You may choose to pay points to improve your interest rate for the term of the loan, meaning you pay more initially. To a lot of people, this makes financial sense..