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

Freezing the Rate

When you are promised a "rate lock" from a lender, it means that you are guaranteed to keep a particular interest rate over a determined period while you work on the application process. This ensures that your interest rate won't get higher as you are going through the application process.

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

More Ways to Save on Interest

In addition to choosing the shorter lock period, there are other ways you can attain the lowest rate. A larger down payment will get you a lower interest rate, since you'll be starting out with a good deal of equity. You can pay points to reduce your rate over the loan term, meaning you pay more initially. To a lot of people, this makes financial sense..

Financial Edge Mortgage Corp. can answer questions about rate lock periods & many others. Give us a call: 425-508-9988.