"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
When you are promised a "rate lock" from your lender, it means that you are guaranteed to get a particular interest rate over a determined period for the application process. This saves you from going through your whole application process and learning at the end that your interest rate has gone up.
While there are various 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 most likely have a higher rate than you would with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
There are other ways to get a reduced rate, in addition to choosing a shorter rate lock period. The bigger down payment you pay, the smaller the interest rate will be, since you will be entering the loan with more equity. You might opt to pay points to reduce your rate over the loan term, meaning you pay more up front. To many people, this is a good option..
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