Getting a Low Interest Rate

Locking in your Interest Rate

When you are promised a "rate lock" from the lender, it means that you are guaranteed to keep a set interest rate over a determined period while you work on your application process. This saves you from working through your entire application process and finding out at the end that the interest rate has risen higher.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer period typically costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher rate than you would with a shorter rate lock period

More Ways to Save on Interest

In addition to going with a shorter rate lock period, there are other ways you may be able to attain the lowest rate. The bigger down payment you can make, the lower the rate will be, as you will have more equity from the start. You can pay points to reduce your interest rate for the life of the loan, meaning you pay more initially. To many people, this is a good option..