"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 freeze a particular interest rate and a specific number of points for you for a certain period during your application process. This protects you from working through your entire application process and finding out at the end that the interest rate has gotten higher.

While there can be a choice of rate lock periods (from 15 to 60 days), the extended ones are usually more expensive. The lending institution may agree to lock in an interest rate and points for a longer period, such as 60 days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.

More Ways to Get a Great Interest Rate

In addition to choosing a shorter rate lock period, there are other ways you can attain the best rate. A bigger down payment will give you a reduced interest rate, since you will be starting out with a good deal of equity. You can pay points to lower your rate over the loan term, meaning you pay more initially. To a lot of people, this is a good option..

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

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