Getting a Low Interest Rate
Lock It In
When you are offered a "rate lock" from a lender, it means that you are guaranteed to keep a particular interest rate for a determined period while you work on your application process. This means your interest rate can't rise while you are working through the application process.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer ones typically costing more. The lending institution will agree to hold an interest rate and points for a longer period, such as sixty days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.
Other Interest Saving Strategies
In addition to going with a shorter lock period, there are several ways you can get the lowest rate. The larger down payment you can pay, the lower your interest rate will be, as you will have more equity from the start. You might choose to pay points to lower your interest rate for the life of the loan, meaning you pay more up front. To many people, this makes sense and is a good deal..
America's Money Source can walk you through the pitfalls of getting a mortgage. Call us: (407) 898-7559.
Do you have a question regarding a mortgage program?