Getting a Low Interest Rate

Locking It In

When you're offered a "rate lock" from a lender, it means that you are guaranteed to keep a certain interest rate over a determined period while you work on your application process. This means your interest rate will not get higher during the application process.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer ones generally costing more. A lender can 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 a shorter period.

More Ways to Save on Interest

There are other ways to get a better rate, besides going with a shorter rate lock period. A larger down payment will result in a better interest rate, since you will be starting out with more equity. You could choose to pay points to reduce your interest rate for the loan term, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..

Affinity Mortgage Brokers can walk you through the pitfalls of getting a mortgage. Call us: 719-331-6278.

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