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

Locking It In

When you're promised a "rate lock" from a lender, it means that you are guaranteed to keep a specific interest rate over a certain number of days for the application process. This prevents you from going through your entire application process and discovering at the end that your interest rate has gotten higher.

While there may be a choice 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 probably have a higher rate than you would with a shorter rate lock period

More Ways to Get a Great Interest Rate

In addition to opting for a shorter rate lock period, there are more ways you can score the lowest rate. The more the down payment, the lower your rate will be, as you will be entering the loan with more equity. You could opt to pay points to lower your interest rate for the loan term, meaning you pay more initially. For a lot of people, this makes sense and is a good deal..

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can answer questions about rate lock periods & many others. Call us at (808) 935-0678.