Locking In A Custom Interest Rate
As a mortgage broker I am always looking for ways to offer better product selection, loan processing, closing and rate options, etc. When to lock an interest rate is always a topic we discuss as part of the home mortgage process. Typically rates are quoted in 1/8% increments and typical lock periods are 15, 30, 45, or 60 days. The goal of course is to make the best decision possible about locking in a rate. For instance you want to take a look at different rates to consider the options of whether buying a rate down is money well spent.
Now we can offer a custom rate. A custom rate can be for a lock period different than the typical period and can be customized for a certain amount one wants to spend on a rate. For instance a lock can be for 18 days and suppose a borrower wants the lender to provide a $500 credit. We can look at that option. A custom rate can result in a somewhat better rate or a shorter lock period. The shorter the lock period the better the rate. Now a person financing a home can have access to locking in a custom expiration date improving the interest rate. If 20 days will suffice then locking in a rate for a shorter time will result in a better rate than a 30 day lock.
Custom rate locks are new. This, along with flex terms for repayment can make home financing a more custom fit for borrowers.