Getting a Low Interest Rate

Freezing the Rate

When you are promised a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate over a determined period while you work on the application process. This protects you from getting through your whole application process and learning at the end that your interest rate has gone up.

Rate lock periods can be various lengths of time, between 15 to 60 days, with the longer spans generally costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would have with a shorter rate lock span of time

More Ways to Save on Interest

In addition to choosing the shorter lock period, there are several ways you can score the best rate. A larger down payment will give you a reduced interest rate, since you'll have more equity at the start. You might opt to pay points to reduce your rate for the loan term, meaning you pay more up front. One strategy that is a good option for many people is to pay points to bring the rate down over the life of the loan. You will pay more initially, but you will save money in the end.

At AmeriBest Mortgage, we answer questions about this process every day. Give us a call at 3217777277.