Getting a Low Interest Rate

Freezing the Rate

A rate "lock" or "commitment" is a promise from the lender to freeze a specific interest rate and a certain number of points for you for a specified period of time during your application process. This means your interest rate won't rise during the application process.

While there are various lengths of rate lock periods (from 15 to 60 days), the longer spans are typically more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher interest rate than you would have with a shorter period

More Ways to Get a Great Interest Rate

There are other ways to get a low rate, in addition to agreeing to a shorter rate lock period. The more the down payment, the lower your interest rate will be, as you will have more equity from the start. You could choose to pay points to improve your interest rate for the loan term, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to improve the interest rate over the term of the loan. You'll pay more initially, but you will save money in the end.

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