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

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Locking in your Interest Rate

A rate "lock" or "commitment" is a promise from the lender to lock in a certain interest rate and a particular number of points for you for a specified period while your application is processed. This ensures that your interest rate cannot grow while you are going through the application process.

Although there are various lengths of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. The lender will agree to freeze an interest rate and points for a longer period, such as sixty 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 other ways to get a low rate, besides going with a shorter rate lock period. A bigger down payment will give you a reduced interest rate, since you'll be starting out with a good deal of equity. You could choose to pay points to improve your interest rate over the life of the loan, meaning you pay more up front. To many people, this makes sense and is a good deal..

United Lending LLC can answer questions about rate lock periods and many others. Call us: 512-699-4290.