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

Locking in your Interest Rate

A rate "lock" or "commitment" is a promise from the lender to freeze a certain interest rate and a particular number of points for you for a certain period of time while your application is processed. This means your interest rate cannot go up during the application process.

While there might be a choice of rate lock periods (from 15 to 60 days), the extended spans are generally 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 rate lock period

Other Ways to Save on Interest

In addition to opting for the shorter rate lock period, there are several ways you can attain the best rate. A bigger down payment will give you a better interest rate, since you are starting out with more equity. You might opt to pay points to reduce your interest rate for the loan term, meaning you pay more initially. To many people, this makes financial sense..

Riviera Funding NMLS#861382 CA DRE Broker #01186669 can walk you through the pitfalls of getting a mortgage. Give us a call at 3103737406.

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Riviera Funding NMLS#861382 CA DRE Broker #01186669

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