What is a "rate lock period"?
Locking It In
A rate "lock" or "commitment" is a lender's promise to hold a certain interest rate and a specific number of points for you for a certain period of time during your application process. This saves you from going through your whole application process and learning at the end that your interest rate has gone up.
While there might be a choice of rate lock periods (from 15 to 60 days), the longer ones are typically more expensive. You can get a longer period for your lock, but in making this choice, will likely have a higher interest rate than you would have with a shorter span of time
Additional Ways to Save on Interest
There are more ways to get a lower rate, in addition to going with a shorter rate lock period. A larger down payment will get you a reduced interest rate, because you'll have more equity at the start. You might opt to pay points to bring down your rate for the loan term, meaning you pay more up front. To a lot of people, this is a good option..
Executive Lending Group, LLC can answer questions about rate lock periods & many others. Call us: (816) 525-8000.
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