"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate over a determined period while you work on the application process. This keeps you from going through your whole application process and learning at the end that your interest rate has risen higher.
While there are several lengths of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would with a shorter period
Other Ways to Save on Interest
There are more ways to get a reduced rate, in addition to opting for a shorter rate lock period. A larger down payment will get you a lower interest rate, because you are starting out with more equity. You can pay points to reduce your rate over the loan term, meaning you pay more up front. To many people, this makes financial sense..
Executive Lending Group, LLC can walk you through the pitfalls of getting a mortgage. Call us at (816) 525-8000 & (81.
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