"Rate Lock" and other Ways to Get a Lower Interest Rate
Lock It In
A rate "lock" or "commitment" is a promise from the lender to hold a specific interest rate and a certain number of points for you for a certain period during your application process. This ensures that your interest rate won't grow during the application process.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer period usually costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would have with a shorter rate lock period
Other Ways to Save on Interest
In addition to going with the shorter rate lock period, there are several ways you can attain the best rate. A larger down payment will result in a reduced interest rate, because you'll have more equity from the beginning. You can pay points to improve your interest rate for the loan term, meaning you pay more initially. For many people, this makes financial sense..
Prime Capital Mortgage Corp can answer questions about rate lock periods & many others. Call us: 248-644-1200.
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