"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking It In
A rate "lock" or "commitment" is a lender's promise to hold a specific interest rate and a particular number of points for you for a certain period of time during your application process. This means your interest rate won't rise while you are working through the application process.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer spans usually costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would with a shorter span of time
Other Ways to Save on Interest
There are other ways to get a good rate, in addition to agreeing to a shorter rate lock period. A larger down payment will get you a lower interest rate, since you are starting out with more equity. You might opt to pay points to lower your rate for the loan term, meaning you pay more initially. For many people, this is a good option..
Executive Lending Group, LLC can walk you through the pitfalls of getting a mortgage. Call us at (816) 525-8000 & (81.
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