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

Lock It In

When you are promised a "rate lock" from a lender, it means that you are guaranteed to get a certain interest rate for a determined period while you work on your application process. This protects you from going through your whole application process and finding out at the end that the interest rate has gotten higher.

Although there are various lengths of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would with a shorter period

Additional Ways to Save on Interest

There are other ways to get a good rate, in addition to going with a shorter rate lock period. A bigger down payment will give you a reduced interest rate, since you'll have a good amount of equity at the start. You can pay points to lower your interest rate over the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to improve the rate over the life of the loan. You will pay more initially, but you'll come out ahead in the end.

At Riviera Funding NMLS#861382 CA DRE Broker #01186669, we answer questions about this process every day. Give us a call: 3103737406.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question

Riviera Funding NMLS#861382 CA DRE Broker #01186669

1801 S. Catalina Avenue Suite #201
Redondo Beach, CA 90277