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

Locking in your Interest Rate

When you're offered a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate for a determined period for your application process. This means your interest rate cannot grow during the application process.

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

Other Ways to Save on Interest

In addition to opting for a shorter lock period, there are several ways you are able to attain the best rate. The larger the down payment, the lower your interest rate will be, since you will be starting with more equity. You may opt to pay points to bring down your rate over the life of the loan, meaning you pay more initially. To a lot of people, this makes sense and is a good deal..

At Foxfield Financial, we answer questions about this process every day. Call us at 720-598-8300.

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