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

What is a Rate Lock?

When you're offered a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a determined period for your application process. This means your interest rate won't rise as you are going through the application process.

Although there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. A lending institution may agree to freeze an interest rate and points for a longer span of time, such as 60 days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of fewer days.

More Ways to Save on Interest

In addition to going with a shorter rate lock period, there are more ways you can get the best rate. The bigger the down payment, the better the interest rate will be, because you will be starting with more equity. You can pay points to lower your interest rate over the loan term, meaning you pay more up front. To a lot of people, this makes financial sense..

Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 can answer questions about rate lock periods & many others. Call us: 2146635355.