Posted 4 years, 5 months ago

As with any purchase you make, you want the best value possible.  Value is a combination of professional advice, service and price.  With a mortgage, the price is a combination of interest rate and discount points.*  The terms that are available when you apply for a mortgage may seem good, but rates and points can fluctuate from day to day.  The way to ensure you get the rate and points you want is to “lock in” the rate at some point in the process, or even on the same day you apply.

A lock-in, also called a “rate-lock” or “rate commitment”, is our promise to hold a specific interest rate, typically for a stated period of time, while your loan application is processed.  There are different programs and time periods offered and lock-in requirements may vary, but locking in a rate will ensure your mortgage cost stays within your budget.

 *Discount points, or origination fees, are fees paid at closing.  Points may also be added to the new loan amount to reduce out-of-pocket expenses at closing.  A point is equal to 1% of your mortgage amount (or $1,000 for every $100,000).    

 Please call us with any questions or if you would like to review the lock-in programs available.

 Sincerely,

 -The Kavanewsky Team