"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 specific interest rate and a specific number of points for you for a specified period of time while your application is processed. This means your interest rate won't rise as you are going through the application process.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer spans typically costing more. You can get a longer period for your lock, but in doing so, will likely have a higher rate than you would have with a shorter rate lock span of time
Other Ways to Save on Interest
There are more ways to get a good rate, in addition to opting for a shorter rate lock period. The more the down payment, the lower the interest rate will be, because you will be entering the loan with more equity. You could opt to pay points to improve your rate for the loan term, meaning you pay more initially. To many people, this makes sense and is a good deal..
Savers Home Loans can answer questions about rate lock periods & many others. Give us a call: (800) 974-0509.