Getting a Low Interest Rate

Lock It In

A rate "lock" or "commitment" is a promise from the lender to lock in a certain interest rate and a certain number of points for you for a specified period of time during your application process. This ensures that your interest rate will not grow during the application process.

While there might be a choice of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would have with a shorter rate lock period

Other Interest Saving Strategies

In addition to choosing the shorter lock period, there are more ways you may be able to attain the best rate. A bigger down payment will get you a better interest rate, since you will have a good amount of equity at the start. You may choose to pay points to bring down your interest rate over the loan term, meaning you pay more up front. One strategy that is a good option for many people is to pay points to bring the rate down over the life of the loan. You'll pay more up front, but you'll come out ahead in the end.

Custom Lending Group can answer questions about rate lock periods and many others. Give us a call at 7072522700.

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