"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
A rate "lock" or "commitment" is a lender's promise to lock in a specific interest rate and a certain number of points for you for a specified period of time while your application is processed. This means your interest rate cannot rise as you are going through the application process.
Although there can be a choice of rate lock periods (from 15 to 60 days), the longer spans are typically more expensive. A lending institution can agree to lock in an interest rate and points for a longer span of time, say sixty days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of a shorter period.
Additional Ways to Save on Interest
There are more ways to get a lower rate, in addition to choosing a shorter rate lock period. The more the down payment, the lower the interest rate will be, since you will be starting with more equity. You could opt to pay points to lower your interest rate over the loan term, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..
Executive Lending Group, LLC can walk you through the pitfalls of getting a mortgage. Call us: (816) 525-8000 & (81.
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