"Rate Lock" and other Ways to Get a Lower Interest Rate

Freezing the Rate

A rate "lock" or "commitment" is a lender's promise to set a particular interest rate and a particular number of points for you for a certain period during your application process. This protects you from working through your entire application process and finding out at the end that the interest rate has gone up.

Although there are various lengths of rate lock periods (from 15 to 60 days), the longer ones are typically more expensive. A lending institution can agree to hold an interest rate and points for a longer period, such as sixty days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of a shorter period.

More Ways to Save on Interest

There are more ways to get a lower rate, besides going with a shorter rate lock period. The bigger the down payment, the lower the interest rate will be, since you will have more equity from the beginning. You might opt to pay points to reduce your rate for the loan term, meaning you pay more initially. To a lot of people, this is a good option..

Firelight Mortgage Consultants can walk you through the pitfalls of getting a mortgage. Give us a call: 3032282254.

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Firelight Mortgage Consultants

Company NMLS#: 381658

7887 East Belleview Ave Ste 1100
Englewood, CO 80111