Getting a Low Interest Rate
Lock It In
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 while your application is processed. This prevents you from working through your entire application process and finding out at the end that your interest rate has gone up.
While there can be a choice of rate lock periods (from 15 to 60 days), the extended ones are typically more expensive. A lending institution can agree to lock in an interest rate and points for a longer span of time, such as 60 days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of fewer days.
Other Interest Saving Strategies
In addition to opting for the shorter rate lock period, there are more ways you are able to score the best rate. A bigger down payment will get you a reduced interest rate, since you will have more equity at the start. You can pay points to bring down your interest rate over the life of the loan, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..
C2 Financial Corporation can answer questions about rate lock periods & many others. Call us at (727) 478-2797.
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