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

What is a Rate Lock?

A rate "lock" or "commitment" is a promise from the lender to hold a specific interest rate and a specific number of points for you for a specified period during your application process. This ensures that your interest rate will not go up as you are going through the application process.

While there are various lengths of rate lock periods (from 15 to 60 days), the longer ones are usually more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher rate than you would have with a shorter period

More Ways to Get a Great Interest Rate

There are other ways to get a low rate, besides agreeing to a shorter rate lock period. The bigger down payment you can pay, the lower your rate will be, as you will have more equity from the beginning. You can pay points to lower your interest rate over the loan term, meaning you pay more up front. For many people, this makes sense and is a good deal..

Custom Lending Group can walk you through the pitfalls of getting a mortgage. Give us a call at (707) 252-2700.

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