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

Freezing the Rate

When you are offered a "rate lock" from a lender, it means that you are guaranteed to keep a particular interest rate over a determined period for your application process. This keeps you from getting through your whole application process and finding out at the end that your interest rate has risen higher.

Although there are several lengths of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would with a shorter rate lock period

Other Ways to Save on Interest

In addition to opting for a shorter rate lock period, there are more ways you may be able to score the best rate. The bigger down payment you make, the smaller your rate will be, as you will be entering the loan with more equity. You may opt to pay points to reduce your interest rate over the loan term, meaning you pay more up front. To many people, this makes sense and is a good deal.