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

Locking It In

When you're promised a "rate lock" from the lender, it means that you are guaranteed to keep a set interest rate for a certain number of days while you work on your application process. This protects you from working through your entire application process and learning at the end that the interest rate has risen higher.

Although there may be a choice of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. The lender can agree to freeze an interest rate and points for a longer period, say 60 days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of fewer days.

More Ways to Get a Great Interest Rate

There are other ways to get a better rate, besides choosing a shorter rate lock period. The bigger the down payment, the lower your rate will be, as you will be starting with more equity. You could opt to pay points to improve your interest rate for the life of the loan, meaning you pay more up front. To a lot of people, this is a good option..

At Affinity Mortgage Brokers, we answer questions about this process every day. Call us at 719-331-6278.

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