Getting a Low Interest Rate
What is a Rate Lock?
A rate "lock" or "commitment" is a promise from the lender to lock in a particular interest rate and a certain number of points for you for a specified period of time during your application process. This means your interest rate will not rise as you are going through the application process.
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 most likely have a higher interest rate than you would have with a shorter span of time
Other Ways to Save on Interest
In addition to opting for the shorter rate lock period, there are several ways you can get the best rate. A bigger down payment will get you a better interest rate, because you will have a good amount of equity at the start. You could choose to pay points to improve your interest rate for the term of the loan, meaning you pay more initially. To a lot of people, this makes financial sense..
New Millennium Mortgage Co. NMLS: 331173 can answer questions about rate lock periods & many others. Give us a call: (941) 366-5800.
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