Getting a Low Interest Rate

Lock It In

A rate "lock" or "commitment" is a promise from the lender to freeze a certain interest rate and a certain number of points for you for a specified period during your application process. This saves you from working through your entire application process and discovering at the end that your interest rate has gotten higher.

Rate lock periods can vary in length, between 15 to 60 days, with the longer ones typically costing more. The lender can agree to hold an interest rate and points for a longer period, say 60 days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of fewer days.

More Ways to Save on Interest

There are other ways to get a better rate, in addition to agreeing to a shorter rate lock period. The bigger down payment you make, the lower your interest rate will be, because you will have more equity from the beginning. You might choose to pay points to lower your interest rate over the loan term, meaning you pay more up front. For many people, this makes financial sense..

1st Credential Mortgage Inc can answer questions about rate lock periods & many others. Call us at (281) 778-0805.

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