Getting a Low Interest Rate
Lock It In
A rate "lock" or "commitment" is a lender's promise to freeze a specific interest rate and a specific number of points for you for a certain period of time during your application process. This means your interest rate will not get higher during the application process.
Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer ones generally costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would with a shorter rate lock period
Other Interest Saving Strategies
In addition to opting for the shorter lock period, there are several ways you may be able to get the lowest rate. A larger down payment will result in a reduced interest rate, since you are starting out with more equity. You might choose to pay points to improve your rate for the life of the loan, meaning you pay more initially. For many people, this makes sense and is a good deal..
At Real Property Finance, we answer questions about this process every day. Call us at 310-379-5997.
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