Getting a Low Interest Rate

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to lock in a particular interest rate and a certain number of points for you for a specified period of time while your application is processed. This means your interest rate can't rise as you are going through the application process.

Although there are various lengths of rate lock periods (from 15 to 60 days), the longer ones 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 have with a shorter rate lock period

More Ways to Get a Great Interest Rate

There are more ways to get a better rate, in addition to agreeing to a shorter rate lock period. The more the down payment, the lower the rate will be, since you will be entering the loan with more equity. You can pay points to reduce your interest rate over the loan term, meaning you pay more initially. For many people, this is a good option..

First Community Bank of Central Al. can walk you through the pitfalls of getting a mortgage. Call us: (334) 285-8850.

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