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

Locking It In

A rate "lock" or "commitment" is a lender's promise to freeze a certain interest rate and a specific number of points for you for a certain period of time while your application is processed. This ensures that your interest rate can't grow during the application process.

While there are several lengths of rate lock periods (from 15 to 60 days), the longer spans are usually more expensive. You can get a longer period for your lock, but in doing so, will probably have a higher interest rate than you would have with a shorter rate lock period

Other Interest Saving Strategies

In addition to opting for a shorter rate lock period, there are other ways you can score the lowest rate. A larger down payment will result in a lower interest rate, because you will have more equity from the beginning. You can pay points to improve your rate for the life of the loan, meaning you pay more up front. For many people, this makes sense and is a good deal..

At The Reen Team at American Pacific Mortgage, we answer questions about this process every day. Call us: (408) 626-1879.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question