Getting a Low Interest Rate
Lock It In
A rate "lock" or "commitment" is a lender's promise to hold a particular interest rate and a particular number of points for you for a specified period of time during your application process. This ensures that your interest rate won't grow during the application process.
Although there can be a choice of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would have with a shorter period
More Ways to Get a Great Interest Rate
In addition to choosing the shorter lock period, there are other ways you can get the lowest rate. A bigger down payment will result in a reduced interest rate, since you'll be starting out with a good deal of equity. You could opt to pay points to bring down your interest rate for the loan term, meaning you pay more up front. For many people, this is a good option..
At Savers Home Loans, we answer questions about this process every day. Call us: (800) 974-0509.