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

Lock It In

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

Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in doing so, will probably have a higher interest rate than you would with a shorter rate lock span of time

Additional Ways to Save on Interest

In addition to going with a shorter lock period, there are other ways you are able to get the best rate. The more the down payment, the lower the interest rate will be, as you will be entering the loan with more equity. You might choose to pay points to bring down your interest rate for the life of the loan, meaning you pay more initially. For a lot of people, this makes sense and is a good deal..

New Millennium Mortgage Co. NMLS: 331173 can walk you through the pitfalls of getting a mortgage. Give us a call at (941) 366-5800.