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

Lock It In

A rate "lock" or "commitment" is a lender's promise to freeze a specific interest rate and a certain number of points for you for a specified period of time during your application process. This means your interest rate won't grow as you are going through the application process.

While there are various lengths of rate lock periods (from 15 to 60 days), the extended ones are typically 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 rate lock span of time

More Ways to Get a Great Interest Rate

There are other ways to get a low rate, in addition to choosing a shorter rate lock period. The larger down payment you can pay, the better your rate will be, because you will be starting with more equity. You can pay points to bring down your rate over the loan term, meaning you pay more initially. One strategy that is a good option for some is to pay points to reduce the interest rate over the life of the loan. You pay more up front, but you will come out ahead, especially if you don't refinance early.

Norcal Capital Group, Inc can walk you through the pitfalls of getting a mortgage. Give us a call: 6507631924.

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Norcal Capital Group, Inc

1369 El Camino Real
Millbrae, CA 94030