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

Lock It In

When you're offered a "rate lock" from a lender, it means that you are guaranteed to get a certain interest rate over a certain number of days while you work on the application process. This saves you from working through your entire application process and learning at the end that your interest rate has gone up.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer spans typically costing more. The lender may agree to hold an interest rate and points for a longer span of time, like 60 days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of a shorter period.

Other Interest Saving Strategies

In addition to opting for a shorter lock period, there are more ways you may be able to get the best rate. A bigger down payment will get you a better interest rate, because you will have more equity from the beginning. You can pay points to reduce your rate for the loan term, meaning you pay more up front. To many people, this makes financial sense..

Lighthouse Mortgage Company can answer questions about rate lock periods and many others. Call us: 9164348915.

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