Getting a Low Interest Rate

What is a Rate Lock?

When you are offered a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate over a certain number of days for the application process. This saves you from working through your entire application process and discovering at the end that your interest rate has gotten higher.

Although there might be a choice of rate lock periods (from 15 to 60 days), the extended spans are generally more expensive. A lending institution may agree to hold an interest rate and points for a longer period, such as sixty days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.

Additional Ways to Save on Interest

There are more ways to get a better rate, besides agreeing to a shorter rate lock period. The larger the down payment, the better your rate will be, as you will have more equity from the start. You may opt to pay points to lower your rate over the loan term, meaning you pay more initially. For a lot of people, this makes sense and is a good deal..

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

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