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

Locking in your Interest Rate

When you're promised a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate for a certain number of days for your application process. This ensures that your interest rate won't rise during the application process.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer period generally costing more. A lending institution may agree to freeze an interest rate and points for a longer period, such as 60 days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of a shorter period.

Other Interest Saving Strategies

In addition to going with the shorter rate lock period, there are several ways you are able to score the lowest rate. The bigger the down payment, the better your rate will be, because you will have more equity from the beginning. You might opt to pay points to reduce your interest rate for the term of the loan, meaning you pay more up front. For many people, this makes financial sense..

Alternative Mortgage Group can answer questions about rate lock periods and many others. Call us at 561-395-4264.

Alternative Mortgage Group

80 SW 14 Ave
Boca Raton, FL 33486