"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 keep a specific interest rate for a certain number of days while you work on your application process. This means your interest rate won't rise while you are going through the application process.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer ones generally costing more. A lending institution may agree to hold an interest rate and points for a longer span of time, such as sixty days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of a shorter period.

Other Ways to Save on Interest

In addition to choosing the shorter lock period, there are several ways you may be able to get the lowest rate. A larger down payment will give you a better interest rate, since you are starting out with a good deal of equity. You might opt to pay points to bring down your interest rate over the life of the loan, meaning you pay more initially. For many people, this makes financial sense..

At New Millennium Mortgage Co. NMLS: 331173, we answer questions about this process every day. Give us a call at (941) 366-5800.