Getting a Low Interest Rate

Lock It In

A rate "lock" or "commitment" is a promise from the lender to freeze a specific interest rate and a certain number of points for you for a certain period while your application is processed. This means your interest rate can't get higher as you are going through the application process.

Although there are several lengths of rate lock periods (from 15 to 60 days), the longer ones are usually more expensive. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would with a shorter period

More Ways to Get a Great Interest Rate

In addition to going with the shorter lock period, there are several ways you may be able to score the best rate. A bigger down payment will get you a better interest rate, because you will have a good deal of equity from the beginning. You can pay points to reduce your rate for the loan term, meaning you pay more initially. One strategy that is a good option for some is to pay points to bring the rate down 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.

Executive Lending Group, LLC can answer questions about rate lock periods and many others. Give us a call: 8165258000.