"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
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 of time during your application process. This ensures that your interest rate cannot get higher while you are going through the application process.
Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in making this choice, will probably have a higher rate than you would have with a shorter rate lock period
Other Interest Saving Strategies
In addition to going with the shorter lock period, there are more ways you can score the best rate. A bigger down payment will give you a reduced interest rate, since you'll have a good deal of equity from the beginning. You might opt to pay points to reduce your rate over the life of the loan, meaning you pay more up front. To many people, this is a good option..
Pioneer Mortgage Corp can answer questions about rate lock periods & many others. Give us a call at 781-245-4924.