"Rate Lock" and other Ways to Get a Lower Interest Rate
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Locking It In
When you're offered a "rate lock" from your lender, it means that you are guaranteed to keep a certain interest rate over a determined period for your application process. This ensures that your interest rate can't rise as you are working through the application process.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would with a shorter span of time
More Ways to Get a Great Interest Rate
There are other ways to get a better rate, in addition to choosing a shorter rate lock period. A bigger down payment will result in a lower interest rate, because you're starting out with more equity. You can pay points to bring down your interest rate for the loan term, meaning you pay more up front. To many people, this is a good option..