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

Lock It In

A rate "lock" or "commitment" is a lender's promise to hold a certain interest rate and a particular number of points for you for a certain period while your application is processed. This prevents you from going through your whole application process and finding out at the end that your interest rate has risen higher.

While there can be a choice of rate lock periods (from 15 to 60 days), the longer spans are typically more expensive. A lender will agree to freeze an interest rate and points for a longer period, like 60 days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of a shorter period.

More Ways to Get a Great Interest Rate

There are more ways to get a reduced rate, in addition to opting for a shorter rate lock period. The larger the down payment, the better your interest rate will be, as you will be entering the loan with more equity. You may choose to pay points to reduce 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 reduce the rate over the term of the loan. You pay more initially, but you'll save money, especially if you don't refinance early.

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


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