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

Locking in your Interest Rate

When you're promised a "rate lock" from the lender, it means that you are guaranteed to keep a certain interest rate over a certain number of days while you work on the application process. This prevents you from going through your whole application process and learning at the end that your interest rate has risen higher.

Although there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. You can get a longer period for your lock, but in making this choice, will likely have a higher interest rate than you would with a shorter span of time

More Ways to Get a Great Interest Rate

In addition to going with a shorter lock period, there are several ways you are able to score the best rate. The bigger the down payment, the better the rate will be, as you will be entering the loan with more equity. You can pay points to bring down your rate over the term of the loan, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to bring the rate down over the term of the loan. You'll pay more up front, but you'll come out ahead in the end.

At Pacificwide Lending, we answer questions about this process every day. Call us: 9254610500.

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Pacificwide Lending

CA License #01762647 NMLS#241222, TX License #241222, FL License # MBR 3291

7041 Koll Center Pkwy Ste 270 Ste 270
Pleasanton, CA 94566