Getting a Low Interest Rate

Are you looking for a new mortgage loan? We will be glad to assist you! Call us at (916) 597-2858 Want to get started? Apply Here.

Locking in your Interest Rate

A rate "lock" or "commitment" is a promise from the lender to freeze a particular interest rate and a certain number of points for you for a certain period while your application is processed. This ensures that your interest rate cannot grow during the application process.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period usually costing more. A lender will agree to hold an interest rate and points for a longer span of time, say sixty days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of fewer days.

Other Interest Saving Strategies

There are more ways to get a reduced rate, besides going with a shorter rate lock period. The larger the down payment, the better your interest rate will be, as you will have more equity from the start. You could opt to pay points to improve your rate for the loan term, meaning you pay more initially. For many people, this makes sense and is a good deal..

R&R Mortgage can answer questions about rate lock periods and many others. Call us: (916) 597-2858.