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

Locking in your Interest Rate

When you are promised a "rate lock" from the lender, it means that you are guaranteed to keep a specific interest rate for a certain number of days while you work on your application process. This keeps you from going through your whole application process and learning at the end that your interest rate has gotten higher.

Rate lock periods can vary in length, between 15 to 60 days, with the longer ones typically costing more. You can get a longer period for your lock, but in choosing this option, will likely have a higher rate than you would have with a shorter span of time

Additional Ways to Save on Interest

In addition to going with a shorter lock period, there are several ways you are able to attain the best rate. The bigger the down payment, the lower your rate will be, as you will be entering the loan with more equity. You could choose to pay points to reduce your rate over the loan term, meaning you pay more up front. For a lot of people, this makes financial sense..

At Chris Caggiano - Grand Oaks Funding, LLC, we answer questions about this process every day. Give us a call at (718) 477-4405.

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