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

Lock It In

A rate "lock" or "commitment" is a lender's promise to set a specific interest rate and a particular number of points for you for a specified period during your application process. This means your interest rate will not get higher while you are going through the application process.

While there are several lengths 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 likely have a higher rate than you would with a shorter period

Other Interest Saving Strategies

In addition to going with a shorter lock period, there are more ways you are able to attain the best rate. The bigger the down payment, the smaller the interest rate will be, since you will be starting with more equity. You might choose to pay points to bring down your rate over the term of the loan, meaning you pay more up front. One strategy that is a good option for some is to pay points to reduce the rate over the life of the loan. You are paying more up front, but you'll save money, especially if you don't refinance early.

1st Credential Mortgage Inc can answer questions about rate lock periods & many others. Give us a call: (281) 778-0805.

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