Getting a Low Interest Rate
Lock It In
A rate "lock" or "commitment" is a promise from the lender to hold a specific interest rate and a specific number of points for you for a certain period of time during your application process. This ensures that your interest rate will not grow as you are going through the application process.
While there may be a choice of rate lock periods (from 15 to 60 days), the longer spans are typically more expensive. A lender can agree to hold an interest rate and points for a longer span of time, like 60 days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.
More Ways to Save on Interest
In addition to choosing the shorter rate lock period, there are other ways you may be able to score the best rate. A larger down payment will give you a lower interest rate, since you'll have more equity at the start. You can pay points to lower your interest rate for the term of the loan, meaning you pay more initially. For a lot of people, this makes sense and is a good deal..
Coastal Mortgage Corp. can answer questions about rate lock periods and many others. Call us at 504-866-5626.
Do you have a question regarding a mortgage program?