"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 lock in a specific interest rate and a specific number of points for you for a specified period of time while your application is processed. This ensures that your interest rate can't grow during the application process.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period typically costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher interest rate than you would have with a shorter period
Other Ways to Save on Interest
There are more ways to get a reduced rate, in addition to opting for a shorter rate lock period. The bigger down payment you can pay, the lower your interest rate will be, as you will be starting with more equity. You might opt to pay points to lower your rate over the loan term, meaning you pay more up front. To many people, this makes financial sense..
Coastal Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Give us a call: 504-866-5626.
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