Getting a Low Interest Rate

Locking in your Interest Rate

A rate "lock" or "commitment" is a lender's promise to freeze a specific interest rate and a certain number of points for you for a certain period during your application process. This prevents you from getting through your whole application process and discovering at the end that the interest rate has gone up.

Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would have with a shorter rate lock period

Other Ways to Save on Interest

In addition to going with the shorter rate lock period, there are several ways you can get the best rate. The larger the down payment, the smaller the rate will be, because you will have more equity from the start. You can pay points to bring down your interest rate over the life of the loan, meaning you pay more up front. One strategy that is a good option for some is to pay points to reduce the interest rate over the term of the loan. You'll pay more up front, but you'll save money in the long run.

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