Getting a Low Interest Rate

Freezing the Rate

A rate "lock" or "commitment" is a promise from the lender to freeze a specific interest rate and a certain number of points for you for a certain period of time while your application is processed. This means your interest rate can't get higher during the application process.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer spans usually costing more. 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 period

More Ways to Get a Great Interest Rate

There are more ways to get a better rate, besides going with a shorter rate lock period. The larger the down payment, the better the interest rate will be, since you will have more equity from the start. You may choose to pay points to reduce your rate for the loan term, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to bring the rate down over the term of the loan. You'll pay more initially, but you'll come out ahead in the end.

Stepping Stone Mortgage can answer questions about rate lock periods & many others. Call us at 5416833300.


Stepping Stone Mortgage

NMLS-235749 ML-3770

1140 Willagillespie Rd., Suite 13
Eugene, OR 97401