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

Freezing the Rate

When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate for a determined period while you work on your application process. This ensures that your interest rate can't get higher during the application process.

While there are several lengths of rate lock periods (from 15 to 60 days), the extended ones are typically more expensive. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would with a shorter rate lock span of time

More Ways to Get a Great Interest Rate

There are other ways to get a low rate, in addition to opting for a shorter rate lock period. The bigger the down payment, the smaller the interest rate will be, since you will have more equity from the start. You can pay points to reduce your rate over the loan term, meaning you pay more up front. To a lot of people, this is a good option..

New Millennium Mortgage Co. NMLS: 331173 can walk you through the pitfalls of getting a mortgage. Call us: (941) 366-5800.