Getting a Low Interest Rate
Locking It In
When you are promised a "rate lock" from the lender, it means that you are guaranteed to keep a specific interest rate over a determined period for the application process. This keeps you from getting through your whole application process and learning at the end that your interest rate has risen higher.
While there can be a choice of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. The lender can agree to freeze an interest rate and points for a longer period, like 60 days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of a shorter period.
Other Interest Saving Strategies
In addition to opting for a shorter lock period, there are several ways you can attain the lowest rate. The larger down payment you make, the smaller the interest rate will be, as you will have more equity from the beginning. You can pay points to reduce your interest rate over the loan term, meaning you pay more initially. One strategy that is a good option for some is to pay points to reduce the interest rate over the term of the loan. You pay more initially, but you will come out ahead, especially if you keep the loan for a long time.
Executive Lending Group, LLC can answer questions about rate lock periods & many others. Give us a call at (816) 525-8000 & (81.
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