Getting a Low Interest Rate
What is a Rate Lock?
A rate "lock" or "commitment" is a promise from the lender to set a certain interest rate and a specific number of points for you for a certain period of time during your application process. This means your interest rate won't get higher while you are going through the application process.
While there can 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 choosing this option, will likely have a higher interest rate than you would with a shorter rate lock span of time
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 larger down payment will get you a reduced interest rate, because you're starting out with more equity. You can pay points to reduce your interest rate for the term of the loan, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to bring the rate down over the life of the loan. You'll pay more initially, but you will save money in the long run.
New Millennium Mortgage Co. NMLS: 331173 can answer questions about rate lock periods and many others. Give us a call: (941) 366-5800.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.