Getting a Low Interest Rate
Locking in your Interest Rate
A rate "lock" or "commitment" is a lender's promise to lock in a particular interest rate and a particular number of points for you for a certain period during your application process. This means your interest rate will not get higher while you are working through the application process.
While 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 doing so, will probably have a higher rate than you would have with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
There are other ways to get a low rate, in addition to choosing a shorter rate lock period. The bigger down payment you can pay, the better the interest rate will be, since you will have more equity from the beginning. You can pay points to bring down your rate for the life of the loan, meaning you pay more initially. For many people, this is a good option..
Savers Home Loans can walk you through the pitfalls of getting a mortgage. Call us: (800) 974-0509.