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

Locking It In

A rate "lock" or "commitment" is a promise from the lender to set a particular interest rate and a certain number of points for you for a certain period while your application is processed. This prevents you from getting through your whole application process and finding out at the end that the interest rate has gotten higher.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer ones usually 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 with a shorter span of time

Additional Ways to Save on Interest

In addition to opting for the shorter lock period, there are other ways you can attain the best rate. A larger down payment will get you a reduced interest rate, because you'll have more equity from the beginning. You can pay points to lower your interest rate for the life of the loan, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..

At 1st Credential Mortgage Inc, we answer questions about this process every day. Call us: 2817780805.