Getting a Low Interest Rate

Lock It In

A rate "lock" or "commitment" is a promise from the lender to hold a particular 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 will not rise during the application process.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer spans usually costing more. A lender may agree to freeze an interest rate and points for a longer period, say 60 days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of a shorter period.

Other Ways to Save on Interest

In addition to going with the shorter rate lock period, there are more ways you can get the best rate. The larger the down payment, the smaller your rate will be, as you will have more equity from the start. You could opt to pay points to bring down your interest rate over the loan term, meaning you pay more up front. For many people, this is a good option..

At CHASE MORTGAGE, Inc. #317430, we answer questions about this process every day. Give us a call: 4357556622.