Getting a Low Interest Rate
Freezing the Rate
When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a certain interest rate for a determined period while you work on the application process. This saves you from working through your whole application process and learning at the end that the interest rate has gotten higher.
Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer ones generally 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
More Ways to Get a Great Interest Rate
There are more ways to get a better rate, besides agreeing to a shorter rate lock period. The bigger down payment you can pay, the lower the interest rate will be, because you will have more equity from the start. You can pay points to bring down your interest rate for the loan term, meaning you pay more initially. To many people, this makes sense and is a good deal..
At America's Money Source, we answer questions about this process every day. Call us at (407) 898-7559.
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