Getting a Low Interest Rate

Locking in your Interest Rate

When you are offered a "rate lock" from your lender, it means that you are guaranteed to get a specific interest rate for a certain number of days for your application process. This keeps you from going through your entire application process and finding out at the end that your interest rate has gone up.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period typically costing more. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would with a shorter span of time

Other Interest Saving Strategies

There are more ways to get a better rate, in addition to opting for a shorter rate lock period. A larger down payment will give you a better interest rate, since you will be starting out with a good deal of equity. You might choose to pay points to improve your rate for the loan term, meaning you pay more up front. For many people, this makes financial sense..

U.S.A. Lending, Inc. can answer questions about rate lock periods and many others. Give us a call at 305-967-7200.