Getting a Low Interest Rate
Lock It In
A rate "lock" or "commitment" is a promise from the lender to hold a certain interest rate and a specific number of points for you for a certain period while your application is processed. This ensures that your interest rate will not rise while you are working through the application process.
Although there may be a choice of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. 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
In addition to going with the shorter rate lock period, there are more ways you can attain the lowest rate. A bigger down payment will get you a reduced interest rate, because you're starting out with more equity. You can pay points to bring down your rate for the life of the loan, meaning you pay more initially. For many people, this is a good option..
Affinity Mortgage Brokers can answer questions about rate lock periods and many others. Give us a call at 719-425-2226.