"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
A rate "lock" or "commitment" is a promise from the lender to lock in a specific interest rate and a certain number of points for you for a specified period during your application process. This means your interest rate won't go up as you are working through the application process.
Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer spans typically costing more. You can get a longer period for your lock, but in making this choice, will probably have a higher interest rate than you would have with a shorter rate lock period
Additional Ways to Save on Interest
In addition to choosing a shorter rate lock period, there are more ways you are able to score the lowest rate. A bigger down payment will result in a reduced interest rate, because you will be starting out with more equity. You may choose to pay points to bring down your rate over the loan term, meaning you pay more up front. To many people, this makes financial sense..
Coastal Mortgage Corp. can answer questions about rate lock periods & many others. Call us: 504-866-5626.
Do you have a question regarding a mortgage program?