Getting a Low Interest Rate

Freezing the Rate

When you are promised a "rate lock" from your lender, it means that you are guaranteed to get a certain interest rate for a certain number of days while you work on the application process. This ensures that your interest rate won't grow during the application process.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer period generally costing more. The lender may 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 higher than that of a rate lock of a shorter period.

Other Interest Saving Strategies

There are other ways to get a lower rate, in addition to opting for a shorter rate lock period. The bigger down payment you can make, the smaller your interest rate will be, since you will have more equity from the start. You may choose to pay points to improve your interest rate for the life of the loan, meaning you pay more up front. For a lot of people, this makes financial sense..

Pioneer Mortgage Corp can answer questions about rate lock periods and many others. Call us: 7812454924.