Getting a Low Interest Rate

Locking in your Interest Rate

When you are promised a "rate lock" from a lender, it means that you are guaranteed to keep a set interest rate for a certain number of days for the application process. This means your interest rate can't grow during the application process.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer spans generally costing more. The lending institution can agree to hold an interest rate and points for a longer span of time, say 60 days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of fewer days.

Other Interest Saving Strategies

There are more ways to get a better rate, besides agreeing to a shorter rate lock period. The bigger the down payment, the better your interest rate will be, because you will be starting with more equity. You can pay points to bring down your rate for the loan term, meaning you pay more initially. To a lot of people, this is a good option..

At Executive Lending Group, LLC, we answer questions about this process every day. Give us a call at 8165258000.