"Rate Lock" and other Ways to Get a Lower Interest Rate

Freezing the Rate

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

Although there are several lengths of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would with a shorter period

Other Ways to Save on Interest

There are more ways to get a lower rate, in addition to opting for a shorter rate lock period. The more the down payment, the lower your interest rate will be, as you will have more equity from the start. You may choose to pay points to bring down your interest rate for the loan term, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to reduce the interest rate over the life of the loan. You pay more initially, but you will save money in the end.

At Augusta Mortgage Solutions, we answer questions about this process every day. Call us at 7068605514.

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Augusta Mortgage Solutions

NMLS#:148529 GA Residential Mortgage Licensee #18861

141 North Belair Road Suite 102 NMLS# 149807
Evans, GA 30809-7431