Getting a Low Interest Rate

Lock It In

A rate "lock" or "commitment" is a promise from the lender to hold a particular interest rate and a certain number of points for you for a specified period of time while your application is processed. This saves you from working through your whole application process and discovering at the end that the interest rate has gone up.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer ones usually costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would with a shorter period

Other Ways to Save on Interest

There are other ways to get a better rate, in addition to going with a shorter rate lock period. The bigger down payment you can pay, the lower the interest rate will be, as you will have more equity from the beginning. You can pay points to improve your interest rate over the life of the loan, meaning you pay more initially. One strategy that is a good option for many people is to pay points to improve the interest rate over the term of the loan. You'll pay more up front, but you'll come out ahead, especially if you keep the loan for a long time.

At Executive Lending Group, LLC, we answer questions about this process every day. Call us: 8165258000.