Getting a Low Interest Rate

Locking in your Interest Rate

When you're promised a "rate lock" from a lender, it means that you are guaranteed to keep a specific interest rate over a determined period for the application process. This ensures that your interest rate cannot go up during the application process.

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

More Ways to Get a Great Interest Rate

There are more ways to get a lower rate, in addition to opting for a shorter rate lock period. A bigger down payment will give you a better interest rate, since you will have more equity from the beginning. You could opt to pay points to lower your interest rate for the loan term, meaning you pay more up front. One strategy that is a good option for some is to pay points to improve the rate over the life of the loan. You will pay more up front, but you will save money in the end.

America's Home Loans can answer questions about rate lock periods and many others. Give us a call at 701.222.0100.

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