Getting a Low 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 specified period while your application is processed. This ensures that your interest rate will not go up during the application process.
While there are several lengths of rate lock periods (from 15 to 60 days), the longer ones are typically more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would with a shorter rate lock period
Other Interest Saving Strategies
There are other ways to get a good rate, in addition to going with a shorter rate lock period. A larger down payment will result in a reduced interest rate, because you are starting out with a good deal of equity. You could opt to pay points to improve your rate over the term of the loan, meaning you pay more up front. To many people, this makes financial sense..
Financial Edge Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Call us: 425-508-9988.
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