Getting a Low Interest Rate

Locking in your Interest Rate

A rate "lock" or "commitment" is a promise from the lender to hold a specific interest rate and a specific number of points for you for a certain period of time while your application is processed. This saves you from working through your entire application process and learning at the end that your interest rate has gotten higher.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer spans typically costing more. You can get a longer period for your lock, but in doing so, will likely have a higher rate than you would with a shorter rate lock span of time

More Ways to Get a Great Interest Rate

There are more ways to get a better rate, besides choosing a shorter rate lock period. The larger down payment you pay, the lower the interest rate will be, because you will have more equity from the beginning. You might opt to pay points to lower your interest rate for the loan term, meaning you pay more initially. One strategy that is a good option for many people is to pay points to reduce the interest rate over the term of the loan. You are paying more up front, but you'll come out ahead, especially if you keep the loan for a long time.

At 1st Credential Mortgage Inc, we answer questions about this process every day. Call us: (281) 778-0805.

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