Getting a Low Interest Rate
Lock It In
A rate "lock" or "commitment" is a lender's promise to freeze a particular interest rate and a specific number of points for you for a certain period of time while your application is processed. This keeps you from going through your entire application process and discovering at the end that the interest rate has risen higher.
While there might be a choice of rate lock periods (from 15 to 60 days), the extended ones are usually more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher rate than you would with a shorter rate lock period
Additional Ways to Save on Interest
There are more ways to get a good rate, besides choosing a shorter rate lock period. The bigger down payment you can make, the better your rate will be, since you will be starting with more equity. You can pay points to reduce your interest rate over the term of the loan, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to improve the interest rate over the life of the loan. You'll pay more up front, but you'll come out ahead, especially if you keep the loan for a long time.
Hancock Mortgage Partners, LLC NMLS# 229844 can walk you through the pitfalls of getting a mortgage. Give us a call: 225 819 7670.