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

Locking It In

A rate "lock" or "commitment" is a lender's promise to freeze a certain interest rate and a specific number of points for you for a certain period of time while your application is processed. This prevents you from going through your whole application process and finding out at the end that your interest rate has gotten higher.

While there are several lengths of rate lock periods (from 15 to 60 days), the extended ones are typically more expensive. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would have with a shorter rate lock period

Other Interest Saving Strategies

There are more ways to get a low rate, besides agreeing to a shorter rate lock period. A bigger down payment will result in a lower interest rate, since you will have a good deal of equity from the beginning. You can pay points to reduce your interest rate over the term of the loan, meaning you pay more initially. For a lot of people, this is a good option..

New Millennium Mortgage Co. NMLS: 331173 can answer questions about rate lock periods & many others. Call us at (941) 366-5800.