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

Freezing the Rate

When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate over a certain number of days for your application process. This means your interest rate can't go up during the application process.

While there are various lengths of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher interest rate than you would with a shorter rate lock span of time

More Ways to Save on Interest

There are other ways to get a reduced rate, in addition to going with a shorter rate lock period. The larger down payment you can make, the lower the rate will be, as you will be starting with more equity. You might opt to pay points to bring down your interest rate over the loan term, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to bring the rate down over the life of the loan. You are paying more initially, but you will come out ahead in the long run.

At Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234, we answer questions about this process every day. Give us a call: 2146635355.