Getting a Low Interest Rate

Freezing the Rate

When you're offered a "rate lock" from your lender, it means that you are guaranteed to get a set interest rate over a determined period for your application process. This means your interest rate cannot go up during the application process.

Although there are several lengths of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would with a shorter span of time

Other Ways to Save on Interest

There are more ways to get a reduced rate, in addition to choosing a shorter rate lock period. A larger down payment will result in a better interest rate, since you are starting out with a good deal of equity. You can pay points to lower your rate for the loan term, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to improve the rate over the term of the loan. You'll pay more up front, but you will come out ahead in the long run.

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

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