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

Freezing the Rate

When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a certain number of days while you work on your application process. This ensures that your interest rate will not get higher during the application process.

Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer spans usually costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher interest rate than you would have with a shorter span of time

More Ways to Get a Great Interest Rate

In addition to opting for the shorter lock period, there are more ways you can get the best rate. A larger down payment will get you a lower interest rate, since you will have a good amount of equity at the start. You can pay points to improve your rate over the loan term, meaning you pay more up front. For many people, this is a good option..

Colorado Mortgage Company can walk you through the pitfalls of getting a mortgage. Call us: 719-357-6601.

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