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

Lock It In

A rate "lock" or "commitment" is a promise from the lender to hold a certain interest rate and a particular number of points for you for a certain period while your application is processed. This protects you from going through your whole application process and learning at the end that the interest rate has gotten higher.

Although there can be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. The lender will agree to freeze an interest rate and points for a longer period, like 60 days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of a shorter period.

More Ways to Save on Interest

In addition to choosing a shorter lock period, there are other ways you can score the best rate. A bigger down payment will get you a reduced interest rate, because you'll be starting out with more equity. You can pay points to improve your interest rate over the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to reduce the interest rate over the life of the loan. You pay more initially, but you'll save money in the long run.

Hawk Mortgage Group can answer questions about rate lock periods & many others. Call us: (443) 619-7900.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question