Getting a Low Interest Rate

What is a Rate Lock?

A rate "lock" or "commitment" is a promise from the lender to hold a certain interest rate and a particular number of points for you for a certain period of time during your application process. This ensures that your interest rate cannot rise while you are working through the application process.

Rate lock periods can vary in length, between 15 to 60 days, with the longer spans generally costing more. You can get a longer period for your lock, but in doing so, will probably have a higher interest rate than you would have with a shorter period

Other Interest Saving Strategies

In addition to going with a shorter lock period, there are more ways you may be able to get the lowest rate. The bigger down payment you can make, the smaller the interest rate will be, as you will have more equity from the beginning. You can pay points to lower your rate over the term of the loan, meaning you pay more initially. For a lot of people, this makes financial sense..

Forum Mortgage Bancorp can answer questions about rate lock periods & many others. Give us a call at (773) 774-9040 Ext 121.

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