Getting a Low Interest Rate

Freezing the Rate

A rate "lock" or "commitment" is a lender's promise to set a particular interest rate and a particular number of points for you for a specified period during your application process. This ensures that your interest rate will not grow during the application process.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer spans generally costing more. A lender will agree to hold an interest rate and points for a longer span of time, such as sixty 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 good rate, besides going with a shorter rate lock period. A larger down payment will give you a reduced interest rate, since you will have a good amount of equity at the start. You may opt to pay points to reduce your rate over the loan term, meaning you pay more up front. To a lot of people, this makes sense and is a good deal..

MortgageZ LLC can walk you through the pitfalls of getting a mortgage. Give us a call: 8557558700.

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8280 Willow Oaks Corporate Drive
Fairfax, Virginia 22031