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

Locking in your Interest Rate

When you are offered a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate over a determined period while you work on your application process. This ensures that your interest rate won't grow as you are going through the application process.

While there might be a choice of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. A lender may agree to freeze an interest rate and points for a longer period, say sixty days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of fewer days.

Other Interest Saving Strategies

In addition to choosing the shorter lock period, there are more ways you may be able to attain the best rate. The more the down payment, the better the interest rate will be, as you will have more equity from the start. You might choose to pay points to lower your interest rate for the life of the loan, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..

At Evans Mortgage Company, we answer questions about this process every day. Call us at 916-731-4405.

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