"Rate Lock" and other Ways to Get a Lower Interest Rate
Lock It In
A rate "lock" or "commitment" is a promise from the lender to lock in a particular interest rate and a particular number of points for you for a specified period of time while your application is processed. This prevents you from going through your entire application process and learning at the end that your interest rate has gotten higher.
Although there can be a choice of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. You can get a longer period for your lock, but in making this choice, will probably have a higher interest rate than you would with a shorter period
Additional Ways to Save on Interest
In addition to opting for the shorter rate lock period, there are more ways you may be able to score the lowest rate. The bigger down payment you make, the better the interest rate will be, because you will be starting with more equity. You can pay points to improve your rate for the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to bring the rate down over the life of the loan. You pay more up front, but you'll save money, especially if you keep the loan for a long time.
Executive Lending Group, LLC can answer questions about rate lock periods and many others. Call us at (816) 525-8000.
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