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

Lock It In

When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a particular interest rate over a certain number of days while you work on your application process. This means your interest rate won't go up during the application process.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer period typically costing more. The lending institution can agree to freeze an interest rate and points for a longer span of time, say sixty days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of fewer days.

Other Interest Saving Strategies

There are more ways to get a reduced rate, in addition to choosing a shorter rate lock period. A larger down payment will give you a better interest rate, since you're starting out with more equity. You could choose to pay points to bring down your interest rate for the life of the loan, meaning you pay more initially. For a lot of people, this is a good option..

At Executive Lending Group, LLC, we answer questions about this process every day. Give us a call at 8165258000.