Getting a Low Interest Rate

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to lock in a particular interest rate and a specific number of points for you for a certain period of time while your application is processed. This protects you from getting through your whole application process and learning at the end that your interest rate has gotten higher.

Although there are several lengths of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. 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

Other Interest Saving Strategies

In addition to going with a shorter rate lock period, there are other ways you can get the lowest rate. The bigger the down payment, the smaller the interest rate will be, since you will be starting with more equity. You may opt to pay points to reduce your rate for the loan term, meaning you pay more up front. To a lot of people, this is a good option..

Diversified Capital Funding can answer questions about rate lock periods and many others. Give us a call: (925) 226-7130 or (209) 833-3338.