Locking It In
A rate "lock" or "commitment" is a lender's promise to lock in a certain interest rate and a particular number of points for you for a certain period while your application is processed. This ensures that your interest rate won't grow during the application process.
While there might be a choice of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. You can get a longer period for your lock, but in making this choice, will probably have a higher interest rate than you would with a shorter rate lock span of time.
More Ways to Get a Great Interest Rate
In addition to choosing the shorter rate lock period, there are other ways you can score the lowest rate. A bigger down payment will get you a better interest rate, because you're starting out with a good deal of equity. You could choose to pay points to bring down your rate for the life of the loan, meaning you pay more initially. For a lot of people, this makes sense and is a good deal..
Shopping for a mortgage loan? At Primary Residential Mortgage, Inc., we answer questions about this process every day. Give Bob a call:
(209) 470-7161
