"Rate Lock" and other Ways to Get a Lower Interest Rate

Lock It In

A rate "lock" or "commitment" is a lender's promise to hold a specific interest rate and a certain number of points for you for a certain period while your application is processed. This saves you from working through your whole application process and learning at the end that your interest rate has gotten higher.

Rate lock periods can be various lengths of time, anywhere from 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 rate lock span of time

Additional Ways to Save on Interest

In addition to choosing the shorter lock period, there are more ways you are able to score the best rate. A bigger down payment will get you a reduced interest rate, because you are starting out with more equity. You can pay points to bring down your rate for the loan term, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..

Avalon Mortgage Services, Inc. can walk you through the pitfalls of getting a mortgage. Give us a call at (708) 403-5181.

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