"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking It In
A rate "lock" or "commitment" is a lender's promise to hold a particular interest rate and a certain number of points for you for a specified period during your application process. This keeps you from getting through your entire application process and discovering at the end that the interest rate has gotten higher.
While there may be a choice of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would with a shorter rate lock span of time
Other Interest Saving Strategies
In addition to choosing a shorter rate lock period, there are other ways you are able to score the lowest rate. The bigger down payment you pay, the smaller the rate will be, as you will be entering the loan with more equity. You can pay points to reduce your rate over the term of the loan, meaning you pay more up front. To many people, this makes financial sense..
Affinity Mortgage Brokers can walk you through the pitfalls of getting a mortgage. Give us a call: 719-425-2226.