Getting a Low Interest Rate
Lock It In
A rate "lock" or "commitment" is a promise from the lender to set a certain interest rate and a particular number of points for you for a certain period of time during your application process. This ensures that your interest rate can't go up while you are working through the application process.
Rate lock periods can vary in length, anywhere from fifteen to sixty 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 span of time
Other Ways to Save on Interest
There are other ways to get a good rate, in addition to opting for a shorter rate lock period. A bigger down payment will give you a lower interest rate, since you will be starting out with more equity. You might choose to pay points to lower your rate over the term of the loan, meaning you pay more up front. To many people, this is a good option..
At Universal Lending Services, Inc., we answer questions about this process every day. Give us a call: (337) 264-9990.
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