Getting a Low Interest Rate

Locking It In

A rate "lock" or "commitment" is a promise from the lender to freeze a certain interest rate and a specific number of points for you for a certain period while your application is processed. This saves you from going through your whole application process and finding out at the end that the interest rate has gotten higher.

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

Other Interest Saving Strategies

There are other ways to get a low rate, besides opting for a shorter rate lock period. The more the down payment, the better your interest rate will be, because you will be starting with more equity. You can pay points to improve your rate for the loan term, meaning you pay more initially. For a lot of people, this makes sense and is a good deal..

At Diamond Mortgage, LLC, we answer questions about this process every day. Call us: 3178427744.