Getting a Low Interest Rate

Lock It In

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

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer period generally costing more. A lending institution will agree to freeze an interest rate and points for a longer period, such as sixty days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of a shorter period.

Other Interest Saving Strategies

There are more ways to get a better rate, in addition to agreeing to a shorter rate lock period. A larger down payment will result in a lower interest rate, because you are starting out with more equity. You can pay points to reduce your interest rate over the life of the loan, meaning you pay more initially. For many people, this makes financial sense..

AmeriBest Mortgage can answer questions about rate lock periods & many others. Call us: 3217777277.