Getting a Low Interest Rate

Locking in your Interest Rate

A rate "lock" or "commitment" is a promise from the lender to freeze a certain interest rate and a certain number of points for you for a certain period during your application process. This ensures that your interest rate can't rise during the application process.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period typically costing more. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would have with a shorter period

More Ways to Save on Interest

There are more ways to get a lower rate, besides agreeing to a shorter rate lock period. A bigger down payment will give you a lower interest rate, since you're starting out with more equity. You can pay points to bring down your interest rate over the life of the loan, meaning you pay more up front. One strategy that is a good option for many people is to pay points to bring the rate down over the term of the loan. You pay more up front, but you'll save money, especially if you keep the loan for the full term.

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

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question