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

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to hold a specific interest rate and a particular number of points for you for a specified period while your application is processed. This keeps you from going through your entire application process and discovering at the end that your interest rate has gotten higher.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would with a shorter rate lock span of time

More Ways to Get a Great Interest Rate

In addition to choosing the shorter rate lock period, there are other ways you are able to attain the best rate. A bigger down payment will give you a reduced interest rate, because you'll have a good deal of equity at the start. You could opt to pay points to improve your interest rate for the loan term, meaning you pay more up front. To a lot of people, this makes financial sense..

Augusta Mortgage Solutions can answer questions about rate lock periods and many others. Give us a call: 706-860-5514.

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