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

Freezing the Rate

When you're promised a "rate lock" from a lender, it means that you are guaranteed to keep a particular interest rate over a certain number of days for the application process. This keeps you from getting through your entire application process and finding out at the end that your interest rate has gotten higher.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would with a shorter period

More Ways to Get a Great Interest Rate

There are other ways to get a low rate, in addition to choosing a shorter rate lock period. The larger the down payment, the smaller the rate will be, because you will have more equity from the beginning. You could opt to pay points to improve your rate over the loan term, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..

At Pioneer Mortgage Corp, we answer questions about this process every day. Call us at 7812454924.