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

Lock It In

A rate "lock" or "commitment" is a promise from the lender to lock in a specific interest rate and a specific number of points for you for a specified period of time during your application process. This means your interest rate can't go up as you are going through the application process.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer ones 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 other ways to get a better rate, besides opting for a shorter rate lock period. A bigger down payment will give you a better interest rate, because you'll have a good amount of equity at the start. You might opt to pay points to reduce your rate over the loan term, meaning you pay more up front. One strategy that is a good option for some is to pay points to improve the rate over the term of the loan. You are paying more up front, but you'll come out ahead in the long run.

Harbor View Lending* a DBA of Megastar Financial can walk you through the pitfalls of getting a mortgage. Call us at (207) 571-8034.