"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
A rate "lock" or "commitment" is a promise from the lender to set a certain interest rate and a certain number of points for you for a specified period during your application process. This protects you from working through your entire application process and discovering at the end that the interest rate has gone up.
Although there may be a choice of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would with a shorter period
Other Interest Saving Strategies
There are more ways to get a low rate, in addition to agreeing to a shorter rate lock period. A bigger down payment will result in a lower interest rate, since you'll have more equity from the beginning. You may opt to pay points to reduce your interest rate for the term of the loan, meaning you pay more up front. For many people, this is a good option..
Ward Kilduff Mortgage can walk you through the pitfalls of getting a mortgage. Call us at (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.