Getting a Low Interest Rate

	Looking for a mortgage loan? We can help! Give us a call today at 651-426-1988. Want to get started? Apply Online Now.

What is a Rate Lock?

When you are promised a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate over a determined period while you work on the application process. This saves you from working through your entire application process and learning at the end that your interest rate has gotten higher.

Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer period usually costing more. The lender will agree to freeze an interest rate and points for a longer span of time, say sixty days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.

More Ways to Get a Great Interest Rate

There are other ways to get a low rate, besides agreeing to a shorter rate lock period. A bigger down payment will give you a lower interest rate, since you will have more equity at the start. You can pay points to bring down your interest rate over the loan term, meaning you pay more initially. For a lot of people, this is a good option..