"Rate Lock" and other Ways to Get a Lower Interest RateShopping for a mortgage loan? We'd be thrilled to discuss your mortgage needs! Give us a call at 800-998-6003. Ready to begin? Apply Here.
Locking in your Interest Rate
A rate "lock" or "commitment" is a lender's promise to freeze a specific interest rate and a certain number of points for you for a specified period during your application process. This saves you from working through your entire application process and finding out at the end that the interest rate has gone up.
Although there are various lengths of rate lock periods (from 15 to 60 days), the extended spans are generally more expensive. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would have with a shorter span of time
More Ways to Get a Great Interest Rate
In addition to going with the shorter lock period, there are other ways you can score the best rate. A larger down payment will give you a better interest rate, because you'll have a good amount of equity from the beginning. You could opt to pay points to reduce your interest rate for the term of the loan, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to reduce the rate over the life of the loan. You are paying more up front, but you'll come out ahead, especially if you keep the loan for the full term.
Allstar Brokers Network DBA InnoDuet can walk you through the pitfalls of getting a mortgage. Give us a call at 800-998-6003.