Getting a Low Interest Rate
What is a Rate Lock?
A rate "lock" or "commitment" is a lender's promise to hold a particular interest rate and a particular number of points for you for a certain period of time while your application is processed. This means your interest rate cannot get higher while you are working through the application process.
Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer ones typically costing more. You can get a longer period for your lock, but in doing so, will probably have a higher interest rate than you would have with a shorter rate lock period
More Ways to Get a Great Interest Rate
There are more ways to get a lower rate, besides choosing a shorter rate lock period. The larger down payment you can pay, the better the rate will be, since you will be starting with more equity. You can pay points to reduce your rate over the term of the loan, meaning you pay more initially. For many people, this makes financial sense..
Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 can walk you through the pitfalls of getting a mortgage. Give us a call at 2146635355.