"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 hold a particular 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 won't go up during the application process.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer ones generally costing more. A lender can agree to hold an interest rate and points for a longer span of time, like 60 days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of fewer days.

Other Interest Saving Strategies

There are other ways to get a reduced rate, in addition to choosing a shorter rate lock period. A bigger down payment will give you a lower interest rate, since you will have more equity at the start. You can pay points to lower your rate over the loan term, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..

Riviera Funding NMLS#861382 CA DRE Broker #01186669 can answer questions about rate lock periods and many others. Call us at 3103737406.

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