"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 particular interest rate and a specific number of points for you for a certain period of time while your application is processed. This ensures that your interest rate will not rise during the application process.
Although there might be a choice of rate lock periods (from 15 to 60 days), the longer ones are usually more expensive. 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 Interest Saving Strategies
In addition to going with the shorter lock period, there are several ways you can get the lowest rate. The bigger down payment you can make, the lower the interest rate will be, since you will be starting with more equity. You can pay points to lower your rate for the loan term, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..
Longhorn Mortgage can walk you through the pitfalls of getting a mortgage. Call us at 512-302-9410.
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