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

Locking in your Interest Rate

When you're promised a "rate lock" from a 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 getting through your entire application process and discovering at the end that the interest rate has risen higher.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period usually costing more. The lender may 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.

Other Interest Saving Strategies

There are other ways to get a lower rate, besides choosing a shorter rate lock period. The larger down payment you can make, the better your interest rate will be, as you will have more equity from the beginning. You may choose to pay points to lower your rate for the loan term, meaning you pay more up front. One strategy that is a good option for many people is to pay points to bring the rate down over the term of the loan. You pay more initially, but you will come out ahead, especially if you don't refinance early.

Affinity Mortgage Brokers can answer questions about rate lock periods and many others. Give us a call: 719-425-2226.


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