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

Lock It In

When you're promised a "rate lock" from your lender, it means that you are guaranteed to get a specific interest rate over a certain number of days while you work on your application process. This means your interest rate can't grow as you are working through the application process.

While there may be a choice of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. A lending institution can agree to lock in an interest rate and points for a longer span of time, say 60 days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of a shorter period.

More Ways to Get a Great Interest Rate

In addition to choosing the shorter rate lock period, there are other ways you can score the lowest rate. The bigger the down payment, the better your rate will be, as you will be starting with more equity. You might choose to pay points to lower your interest rate for the term of the loan, meaning you pay more up front. To a lot of people, this makes financial sense..

At Atlantic Financial Services, we answer questions about this process every day. Give us a call at (732) 969-9300.

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