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

Lock It In

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 means your interest rate won't rise during the application process.

Although there might be a choice of rate lock periods (from 15 to 60 days), the longer ones are typically more expensive. You can get a longer period for your lock, but in doing so, will most likely have a higher interest rate than you would with a shorter period

Additional Ways to Save on Interest

In addition to opting for the shorter lock period, there are other ways you are able to get the best rate. The larger down payment you make, the lower the rate will be, since you will have more equity from the beginning. You can pay points to improve your interest rate for the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to bring the rate down over the life of the loan. You'll pay more initially, but you'll save money in the long run.

U.S.A. Lending, Inc. can walk you through the pitfalls of getting a mortgage. Call us at 305-967-7200.