"Rate Lock" and other Ways to Get a Lower Interest Rate

Lock It In

When you are offered a "rate lock" from the lender, it means that you are guaranteed to keep a certain interest rate for a certain number of days while you work on the application process. This means your interest rate can't grow as you are going through the application process.

Rate lock periods can vary in length, between 15 to 60 days, with the longer ones usually costing more. You can get a longer period for your lock, but in making this choice, will probably have a higher interest rate than you would with a shorter span of time

More Ways to Save on Interest

In addition to going with the shorter rate lock period, there are several ways you are able to get the best rate. The bigger the down payment, the better your rate will be, because you will have more equity from the start. You could opt to pay points to lower your interest rate for the life of the loan, meaning you pay more initially. One strategy that is a good option for many people is to pay points to improve the rate over the life of the loan. You are paying more initially, but you'll come out ahead, especially if you don't refinance early.

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