Getting a Low Interest Rate
Freezing the Rate
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 of time during your application process. This prevents you from getting through your entire application process and learning at the end that the interest rate has risen higher.
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 most likely have a higher interest rate than you would with a shorter period
More Ways to Get a Great Interest Rate
In addition to going with the shorter rate lock period, there are more ways you can get the lowest rate. A bigger down payment will get you a better interest rate, because you're starting out with more equity. You can pay points to improve your rate for the term of the loan, meaning you pay more up front. For a lot of people, this makes financial sense..
Carter Financial Solutions can answer questions about rate lock periods & many others. Give us a call: 8668408745.