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

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to lock in a particular interest rate and a particular number of points for you for a specified period while your application is processed. This protects you from going through your whole application process and discovering at the end that the interest rate has gotten higher.

While there are several lengths of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would with a shorter period

Other Ways to Save on Interest

There are more ways to get a lower rate, in addition to going with a shorter rate lock period. A bigger down payment will result in a reduced interest rate, since you will have more equity from the beginning. You could choose to pay points to bring down your interest rate over the loan term, meaning you pay more up front. For many people, this makes financial sense..

1st Credential Mortgage Inc can answer questions about rate lock periods and many others. Call us at (281) 778-0805.

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