"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 lock in a particular interest rate and a specific number of points for you for a specified period during your application process. This protects you from going through your entire application process and learning at the end that your interest rate has risen higher.

While there might be a choice of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would with a shorter period

Other Interest Saving Strategies

In addition to choosing the shorter lock period, there are more ways you may be able to attain the best rate. The bigger down payment you can make, the better your interest rate will be, as you will be starting with more equity. You can pay points to improve your rate for the life of the loan, meaning you pay more up front. To many people, this is a good option..

Atlantic Financial Services can walk you through the pitfalls of getting a mortgage. Give us a call at (732) 969-9300.

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