Getting a Low Interest Rate
What is a Rate Lock?
A rate "lock" or "commitment" is a lender's promise to lock in a specific interest rate and a certain number of points for you for a specified period during your application process. This ensures that your interest rate can't rise while you are going through the application process.
Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would with a shorter rate lock period
Other Interest Saving Strategies
In addition to choosing the shorter lock period, there are other ways you can get the best rate. The larger down payment you can make, the smaller your rate will be, since you will have more equity from the start. You can pay points to bring down your rate over the term of the loan, meaning you pay more initially. One strategy that is a good option for some is to pay points to improve the interest rate over the term of the loan. You will 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 & many others. Call us at 8165258000.
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