"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 get a set interest rate over a certain number of days while you work on your application process. This means your interest rate will not grow during the application process.
While there can be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would have with a shorter rate lock period
Other Interest Saving Strategies
There are more ways to get a reduced rate, in addition to choosing a shorter rate lock period. The larger the down payment, the better the interest rate will be, as you will be entering the loan with more equity. You may choose to pay points to reduce your rate over the term of the loan, meaning you pay more initially. For a lot of people, this is a good option..
Pacific Loan Brokers can answer questions about rate lock periods and many others. Call us: 877-310-6200.
Get a New Loan Quote
Looking for a new home loan? Fill out the following form to get a fast quote from us.