Getting a Low Interest Rate
Lock It In
When you're offered a "rate lock" from the lender, it means that you are guaranteed to keep a set interest rate over a certain number of days for your application process. This ensures that your interest rate will not rise during the application process.
Although there can be a choice of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. The lender may agree to freeze an interest rate and points for a longer span of time, such as sixty days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of a shorter period.
More Ways to Get a Great Interest Rate
There are other ways to get a better rate, in addition to choosing a shorter rate lock period. A bigger down payment will result in a lower interest rate, since you're starting out with a good deal of equity. You can pay points to lower your rate for the life of the loan, meaning you pay more initially. For a lot of people, this is a good option..
At Executive Lending Group, LLC, we answer questions about this process every day. Call us: (816) 525-8000.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.