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

Locking It In

When you're offered a "rate lock" from the lender, it means that you are guaranteed to keep a certain interest rate over a determined period while you work on the application process. This ensures that your interest rate can't go up while you are going through the application process.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer period usually costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would have with a shorter period

More Ways to Save on Interest

In addition to opting for a shorter rate lock period, there are other ways you can score the best rate. A larger down payment will result in a lower interest rate, since you'll have more equity at the start. You may choose to pay points to bring down your rate over the loan term, meaning you pay more initially. To many people, this makes sense and is a good deal..

At Family Mortgage Company of Hawaii, Inc. NMLS #244497, we answer questions about this process every day. Give us a call: (808) 935-0678.