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

Lock It In

When you are offered a "rate lock" from a lender, it means that you are guaranteed to get a set interest rate over a certain number of days for the application process. This keeps you from going through your whole application process and discovering at the end that your interest rate has risen higher.

Although there are several lengths of rate lock periods (from 15 to 60 days), the extended ones are typically more expensive. A lending institution will agree to hold an interest rate and points for a longer span of time, like sixty days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of a shorter period.

More Ways to Get a Great Interest Rate

In addition to opting for the shorter rate lock period, there are more ways you are able to score the best rate. The more the down payment, the lower the interest rate will be, as you will be starting with more equity. You can pay points to bring down your rate over the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to improve the rate over the life of the loan. You pay more initially, but you will come out ahead in the end.

At AmeriBest Mortgage, we answer questions about this process every day. Call us at (321) 777-7277.

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Please answer the following questions to the best of your knowledge but it must be accurate in order to compare it to the offer you currently have. We hope to $ave you hundreds if not thousands of dollars over the life of your loan. If we can't than you'll be able to sleep better tonight knowing you got the best deal - today!

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