"Rate Lock" and other Ways to Get a Lower Interest Rate
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Locking It In
A rate "lock" or "commitment" is a lender's promise to lock in a particular interest rate and a certain number of points for you for a specified period of time during your application process. This ensures that your interest rate cannot get higher during the application process.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer period usually costing more. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would have with a shorter span of time
Other Interest Saving Strategies
In addition to opting for a shorter lock period, there are several ways you can score the best rate. The larger the down payment, the better the rate will be, as you will be entering the loan with more equity. You could opt to pay points to bring down your interest rate for the term of the loan, meaning you pay more up front. For many people, this makes sense and is a good deal.
Ocean Mortgage can walk you through the pitfalls of getting a mortgage. Call us at 408-823-2321.