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

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Locking It In

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

Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer period usually costing more. The lender can 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 a shorter period.

Other Interest Saving Strategies

In addition to going with the shorter rate lock period, there are several ways you are able to get the best rate. The larger the down payment, the better your rate will be, because you will have more equity from the beginning. You can pay points to improve your interest rate for the term of the loan, meaning you pay more up front. For many people, this is a good option..

FNB Town Square Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call at (817) 366-8666.