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

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Lock It In

A rate "lock" or "commitment" is a lender's promise to freeze a particular interest rate and a specific number of points for you for a certain period of time during your application process. This keeps you from working through your whole application process and learning at the end that your interest rate has risen higher.

Rate lock periods can vary in length, between fifteen to sixty days, with the longer period typically costing more. A lender will agree to lock in an interest rate and points for a longer period, say 60 days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of fewer days.

More Ways to Get a Great Interest Rate

There are more ways to get a better rate, in addition to opting for a shorter rate lock period. The larger down payment you make, the lower the interest rate will be, since you will have more equity from the start. You might choose to pay points to reduce your interest rate over the loan term, meaning you pay more initially. To many people, this makes sense and is a good deal..

At TriStone Financial LLC, we answer questions about this process every day. Call us at (678) 336-5200.