Getting a Low Interest Rate

Freezing the Rate

When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a certain interest rate for a certain number of days for the application process. This keeps you from getting through your whole application process and learning at the end that the interest rate has gone up.

While there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are typically more expensive. You can get a longer period for your lock, but in doing so, will most likely have a higher interest rate than you would with a shorter rate lock period

Other Ways to Save on Interest

In addition to choosing the shorter rate lock period, there are other ways you can score the lowest rate. A larger down payment will give you a better interest rate, because you are starting out with more equity. You can pay points to bring down your rate for the life of the loan, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to reduce the interest rate over the life of the loan. You pay more initially, but you will save money in the long run.

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