Getting a Low Interest Rate
What is a Rate Lock?
When you are promised a "rate lock" from your lender, it means that you are guaranteed to get a particular interest rate for a determined period for your application process. This saves you from working through your whole application process and discovering at the end that the interest rate has gotten higher.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in making this choice, will most likely have a higher rate than you would with a shorter span of time
Other Interest Saving Strategies
There are more ways to get a good rate, in addition to agreeing to a shorter rate lock period. The larger down payment you pay, the smaller your interest rate will be, as you will be entering the loan with more equity. You may choose to pay points to improve your interest rate for the loan term, meaning you pay more up front. To a lot of people, this makes financial sense..
America's Money Source can answer questions about rate lock periods & many others. Give us a call: (407) 898-7559.
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