"Rate Lock" and other Ways to Get a Lower Interest Rate
Are you looking for a new mortgage? We'd be thrilled to answer your questions about our mortgage offerings! Give us a call at 307-732-3053. Want to get started? Apply Online Now
Freezing the Rate
When you are promised a "rate lock" from the lender, it means that you are guaranteed to keep a set interest rate for a determined period while you work on your application process. This protects 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 fifteen to sixty days, with the longer period generally costing more. 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 span of time
Other Interest Saving Strategies
In addition to going with a shorter rate lock period, there are several ways you may be able to get the lowest rate. The bigger down payment you can pay, the smaller your rate will be, since you will have more equity from the start. You could choose to pay points to lower your rate over the term of the loan, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to bring the rate down over the life of the loan. You'll pay more up front, but you will come out ahead in the end.
Bank of Jackson Hole can walk you through the pitfalls of getting a mortgage. Give us a call: 307-732-3053.