"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 particular number of points for you for a specified period of time during your application process. This ensures that your interest rate will not grow during the application process.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer ones typically costing more. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would have with a shorter period

More Ways to Get a Great Interest Rate

There are more ways to get a low rate, in addition to agreeing to a shorter rate lock period. The bigger the down payment, the better the interest rate will be, as you will have more equity from the beginning. You may opt to pay points to reduce your rate for the loan term, meaning you pay more up front. For many people, this is a good option..

At Stepping Stone Mortgage, we answer questions about this process every day. Give us a call at 5416833300.