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

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to hold a specific interest rate and a particular number of points for you for a certain period during your application process. This means your interest rate cannot rise as you are working through the application process.

Although there might be a choice of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. You can get a longer period for your lock, but in doing so, will likely have a higher rate than you would with a shorter period

More Ways to Get a Great Interest Rate

In addition to choosing a shorter rate lock period, there are more ways you may be able to get the best rate. A larger down payment will give you a reduced interest rate, since you will be starting out with a good deal of equity. You might opt to pay points to bring down your rate for the loan term, meaning you pay more up front. To a lot of people, this is a good option..

At The Mortgage Exchange Service LLC, we answer questions about this process every day. Give us a call: 703.255-5810.

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