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

Freezing the Rate

When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a certain interest rate for a determined period while you work on your application process. This saves you from getting through your whole application process and learning at the end that the interest rate has gotten higher.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer period generally costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher interest rate than you would with a shorter rate lock span of time

More Ways to Get a Great Interest Rate

There are more ways to get a reduced rate, besides choosing a shorter rate lock period. The bigger down payment you can make, the better your rate will be, since you will have more equity from the start. You may opt to pay points to reduce your interest rate for the loan term, meaning you pay more up front. For a lot of people, this makes financial sense..

At Hawk Mortgage Group, we answer questions about this process every day. Give us a call: (443) 619-7900.

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