Getting a Low Interest Rate
Locking in your Interest Rate
When you are promised a "rate lock" from the lender, it means that you are guaranteed to get a certain interest rate for a certain number of days for your application process. This means your interest rate cannot get higher during the application process.
Although there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. You can get a longer period for your lock, but in doing so, will likely have a higher rate than you would with a shorter span of time
Other Interest Saving Strategies
There are other ways to get a good rate, in addition to agreeing to a shorter rate lock period. A larger down payment will result in a lower interest rate, since you are starting out with a good deal of equity. You can pay points to reduce your rate over the loan term, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to reduce the rate over the life of the loan. You'll pay more up front, but you'll save money, especially if you don't refinance early.
Executive Lending Group, LLC can answer questions about rate lock periods & many others. Call us at (816) 525-8000.
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