Getting a Low Interest Rate
Freezing the Rate
A rate "lock" or "commitment" is a promise from the lender to lock in a specific interest rate and a specific number of points for you for a specified period of time during your application process. This saves you from going through your whole application process and discovering at the end that the interest rate has risen higher.
While there are several lengths of rate lock periods (from 15 to 60 days), the longer spans are typically more expensive. You can get a longer period for your lock, but in making this choice, will likely have a higher interest rate than you would with a shorter rate lock period
Other Ways to Save on Interest
In addition to opting for the shorter rate lock period, there are more ways you may be able to score the lowest rate. The larger the down payment, the smaller your rate will be, because you will have more equity from the beginning. You can pay points to bring down your rate over the life of the loan, meaning you pay more up front. To many people, this makes financial sense..
Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 can answer questions about rate lock periods and many others. Call us at 214-663-5355.