Getting a Low Interest Rate

Lock It In

A rate "lock" or "commitment" is a lender's promise to set a certain interest rate and a specific number of points for you for a certain period during your application process. This protects you from working through your whole application process and discovering at the end that the interest rate has gotten higher.

Rate lock periods can vary in length, between 15 to 60 days, with the longer spans usually costing more. The lending institution can agree to hold an interest rate and points for a longer span of time, like 60 days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of fewer days.

Other Interest Saving Strategies

There are more ways to get a low rate, in addition to choosing a shorter rate lock period. The bigger down payment you can pay, the better your interest rate will be, as you will have more equity from the start. You could choose to pay points to lower your interest rate over the life of the loan, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..

At U.S.A. Lending, Inc., we answer questions about this process every day. Call us at 305-967-7200.