"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 keep a certain interest rate for a certain number of days for your application process. This ensures that your interest rate can't grow while you are working through the application process.

Rate lock periods can vary in length, between 15 to 60 days, with the longer period usually costing more. You can get a longer period for your lock, but in choosing this option, will most likely have a higher interest rate than you would with a shorter rate lock span of time

More Ways to Get a Great Interest Rate

There are more ways to get a lower rate, besides going with a shorter rate lock period. The bigger the down payment, the better your interest rate will be, since you will be entering the loan with more equity. 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 makes sense and is a good deal..

Northeast Bancorp of America, Inc. can answer questions about rate lock periods and many others. Call us at (440) 234-9660.

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