Getting a Low Interest Rate
Lock It In
A rate "lock" or "commitment" is a lender's promise to set a certain interest rate and a specific number of points for you for a specified period while your application is processed. This protects you from working through your entire application process and discovering at the end that the interest rate has gotten higher.
Although there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would have with a shorter rate lock span of time
Other Interest Saving Strategies
In addition to going with the shorter rate lock period, there are more ways you can score the lowest rate. The larger down payment you can make, the better your rate will be, as you will have more equity from the start. You may choose to pay points to bring down your interest rate over the loan term, meaning you pay more initially. To a lot of people, this makes financial sense..
Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you through the pitfalls of getting a mortgage. Give us a call at (808) 935-0678.
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