"Rate Lock" and other Ways to Get a Lower Interest Rate

Locking in your Interest Rate

A rate "lock" or "commitment" is a lender's promise to hold a particular interest rate and a certain number of points for you for a certain period of time while your application is processed. This keeps you from working through your entire application process and finding out at the end that the interest rate has risen higher.

Rate lock periods can vary in length, between 15 to 60 days, with the longer ones generally costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would have with a shorter period

Other Interest Saving Strategies

There are more ways to get a good rate, in addition to opting for a shorter rate lock period. A larger down payment will result in a better interest rate, because you're starting out with more equity. You can pay points to reduce your rate over the loan term, meaning you pay more initially. For a lot of people, this is a good option..

Executive Lending Group, LLC can walk you through the pitfalls of getting a mortgage. Give us a call at 8165258000.