"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 hold a particular interest rate and a specific number of points for you for a specified period while your application is processed. This means your interest rate cannot grow during the application process.

Rate lock periods can be various lengths of time, between 15 to 60 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 interest rate than you would have with a shorter rate lock span of time

Other Interest Saving Strategies

In addition to opting for the shorter rate lock period, there are other ways you can score the lowest rate. The larger the down payment, the better the interest rate will be, because you will be starting with more equity. You might choose to pay points to improve your interest rate over the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to improve the interest rate over the life of the loan. You will pay more initially, but you'll come out ahead in the end.

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

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Firelight Mortgage Consultants

Company NMLS#: 381658

7887 East Belleview Ave Ste 1100
Englewood, CO 80111