Getting a Low Interest Rate

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to lock in a specific interest rate and a particular number of points for you for a specified period while your application is processed. This prevents you from getting through your entire application process and discovering at the end that your interest rate has gotten higher.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer spans typically costing more. A lending institution can agree to lock in an interest rate and points for a longer span of time, such as sixty days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of a shorter period.

Additional Ways to Save on Interest

There are other ways to get a good rate, in addition to going with a shorter rate lock period. A bigger down payment will result in a reduced interest rate, since you'll have more equity from the beginning. You can pay points to reduce your interest rate for the life of the loan, meaning you pay more up front. For many people, this makes financial sense..

CHASE MORTGAGE, Inc. #317430 can walk you through the pitfalls of getting a mortgage. Give us a call at 4357556622.