"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking in your Interest Rate
A rate "lock" or "commitment" is a promise from the lender to freeze a certain interest rate and a particular number of points for you for a certain period of time during your application process. This protects you from working through your entire application process and finding out at the end that your interest rate has risen higher.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer spans usually costing more. You can get a longer period for your lock, but in making this choice, will most likely have a higher rate than you would with a shorter span of time
More Ways to Get a Great Interest Rate
There are more ways to get a better rate, in addition to opting for a shorter rate lock period. The larger the down payment, the smaller the rate will be, since you will be starting with more equity. You might opt to pay points to lower your interest rate over the loan term, meaning you pay more initially. For many people, this makes financial sense..
Lear Financial Group LLC.
can answer questions about rate lock periods & many others. Call us: 214-869-7339.