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

Freezing the Rate

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

While there may be a choice of rate lock periods (from 15 to 60 days), the longer ones are usually more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher interest rate than you would have with a shorter rate lock period

Other Ways to Save on Interest

In addition to opting for a shorter lock period, there are several ways you can get the best rate. The more the down payment, the smaller your interest rate will be, because you will be entering the loan with more equity. You might opt to pay points to bring down your interest rate for the life of the loan, meaning you pay more initially. For many 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.