Getting a Low Interest Rate

Locking It In

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

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

Other Interest Saving Strategies

There are other ways to get a better rate, besides opting for a shorter rate lock period. A bigger down payment will get you a better interest rate, because you're starting out with more equity. You can pay points to reduce your interest rate for the term of the loan, meaning you pay more initially. To many people, this is a good option..

1st Credential Mortgage Inc can answer questions about rate lock periods and many others. Give us a call at 2817780805.