Getting a Low Interest Rate

Locking in your Interest Rate

A rate "lock" or "commitment" is a lender's promise to freeze a certain interest rate and a certain number of points for you for a certain period while your application is processed. This ensures that your interest rate will not go up during the application process.

Although there might be a choice of rate lock periods (from 15 to 60 days), the extended ones are usually more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher interest rate than you would with a shorter rate lock period

Other Interest Saving Strategies

In addition to opting for the shorter lock period, there are other ways you are able to score the best rate. The bigger the down payment, the smaller the interest rate will be, as you will be starting with more equity. You could opt to pay points to lower your interest rate over the life of the loan, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to reduce the rate over the term of the loan. You'll pay more up front, but you will come out ahead, especially if you don't refinance early.

1st Credential Mortgage Inc can walk you through the pitfalls of getting a mortgage. Give us a call at (281) 778-0805.

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