"Rate Lock" and other Ways to Get a Lower Interest Rate
Locking in your Interest Rate
A rate "lock" or "commitment" is a promise from the lender to set a certain interest rate and a particular number of points for you for a certain period while your application is processed. This means your interest rate can't grow during the application process.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer period typically costing more. You can get a longer period for your lock, but in making this choice, will most likely have a higher interest rate than you would have with a shorter span of time
Other Interest Saving Strategies
There are more ways to get a good rate, besides agreeing to a shorter rate lock period. The more the down payment, the lower your rate will be, since you will be entering the loan with more equity. You may choose to pay points to lower your interest rate over the loan term, meaning you pay more initially. For many people, this is a good option..
Ward Kilduff Mortgage can answer questions about rate lock periods and many others. Call us: (860) 658-7100.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.