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

Locking It In

When you're offered a "rate lock" from the lender, it means that you are guaranteed to get a certain interest rate for a certain number of days while you work on the application process. This means your interest rate won't go up during the application process.

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

More Ways to Save on Interest

There are more ways to get a better rate, in addition to agreeing to a shorter rate lock period. The larger the down payment, the lower the interest rate will be, because you will have more equity from the beginning. You can pay points to lower your interest rate for the loan term, meaning you pay more up front. To a lot of people, this makes financial sense..

Statewide Funding can walk you through the pitfalls of getting a mortgage. Call us at (415) 456-7802.

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