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

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Lock It In

A rate "lock" or "commitment" is a promise from the lender to set a specific interest rate and a certain number of points for you for a specified period of time while your application is processed. This prevents you from going through your whole application process and learning at the end that the interest rate has gone up.

While there are various lengths of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. The lender can agree to lock in an interest rate and points for a longer period, such as 60 days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of fewer days.

More Ways to Get a Great Interest Rate

In addition to choosing a shorter rate lock period, there are several ways you are able to score the best rate. A bigger down payment will result in a better interest rate, because you will have more equity at the start. You might choose to pay points to improve your interest rate for the loan term, meaning you pay more initially. To many people, this makes sense and is a good deal..

Manhattan Lending, LLC can walk you through the pitfalls of getting a mortgage. Call us: 512.257.3749.