Getting a Low Interest Rate

Lock It In

A rate "lock" or "commitment" is a lender's promise to set a specific interest rate and a specific number of points for you for a certain period of time during your application process. This prevents you from getting through your whole application process and finding out at the end that the interest rate has gotten higher.

Although there are various 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 likely have a higher interest rate than you would have with a shorter span of time

Other Interest Saving Strategies

There are other ways to get a lower rate, in addition to agreeing to a shorter rate lock period. A larger down payment will give you a better interest rate, because you will have a good amount of equity from the beginning. You can pay points to lower your rate for the loan term, meaning you pay more initially. For 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 & many others. Give us a call: 2146635355.