Getting a Low Interest Rate
Freezing the Rate
A rate "lock" or "commitment" is a lender's promise to set a specific interest rate and a particular number of points for you for a specified period of time during your application process. This ensures that your interest rate can't get higher during the application process.
Although there are various lengths of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. The lender can agree to freeze an interest rate and points for a longer span of time, such as sixty 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
There are other ways to get a better rate, besides opting for a shorter rate lock period. The bigger the down payment, the smaller your interest rate will be, since you will have more equity from the start. You can pay points to reduce your rate over the loan term, meaning you pay more up front. For a lot of people, this is a good option..
Executive Lending Group, LLC can answer questions about rate lock periods & many others. Call us at (816) 525-8000 & (81.
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