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

Locking It In

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

Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer spans usually costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher interest rate than you would have with a shorter rate lock period

Additional Ways to Save on Interest

There are other ways to get a reduced rate, in addition to going with a shorter rate lock period. A bigger down payment will result in a reduced interest rate, since you will be starting out with a good deal of equity. You can pay points to lower your interest rate over the loan term, meaning you pay more initially. For a lot of people, this is a good option..

At Acceptance Home Loans, we answer questions about this process every day. Give us a call: 817-878-4220.

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