"Rate Lock" and other Ways to Get a Lower Interest Rate
Lock It In
When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate for a certain number of days for the application process. This means your interest rate will not go up during the application process.
Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer period typically costing more. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would have with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
In addition to going with a shorter lock period, there are more ways you are able to attain the best rate. The larger down payment you pay, the smaller your rate will be, since you will have more equity from the beginning. You can pay points to reduce your interest rate over the term of the loan, meaning you pay more up front. One strategy that is a good option for many people is to pay points to bring the rate down over the life of the loan. You pay more initially, but you'll save money in the end.
Executive Lending Group, LLC can answer questions about rate lock periods and many others. Call us: (816) 525-8000 & (81.
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