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

Locking It In

A rate "lock" or "commitment" is a lender's promise to hold a particular interest rate and a specific number of points for you for a certain period while your application is processed. This ensures that your interest rate will not grow while you are going through the application process.

While there might be a choice 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 choosing this option, will probably have a higher interest rate than you would have with a shorter rate lock period

Additional Ways to Save on Interest

There are other ways to get a reduced rate, besides agreeing to a shorter rate lock period. The larger down payment you pay, the smaller the rate will be, as you will be starting with more equity. You might opt to pay points to reduce your interest rate for 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 improve the rate over the life of the loan. You will pay more up front, but you'll come out ahead in the end.

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