"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking in your Interest Rate
A rate "lock" or "commitment" is a lender's promise to hold a specific interest rate and a particular number of points for you for a certain period of time while your application is processed. This saves you from going through your entire application process and finding out at the end that your interest rate has gotten higher.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer spans typically costing more. You can get a longer period for your lock, but in making this choice, will most likely have a higher rate than you would with a shorter rate lock span of time
Other Interest Saving Strategies
In addition to opting for the shorter lock period, there are more ways you can get the lowest rate. The bigger the down payment, the smaller your interest rate will be, as you will have more equity from the beginning. You could choose to pay points to lower your rate over the loan term, meaning you pay more up front. To a lot of people, this is a good option..
New Millennium Mortgage Co. NMLS: 331173 can walk you through the pitfalls of getting a mortgage. Call us at (941) 366-5800.
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