Getting a Low Interest Rate
Locking It In
When you are offered a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate for a certain number of days while you work on your application process. This prevents you from working through your whole application process and learning at the end that your interest rate has gotten higher.
While there may be a choice of rate lock periods (from 15 to 60 days), the longer 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 span of time
Other Ways to Save on Interest
In addition to opting for a shorter rate lock period, there are more ways you can score the lowest rate. A larger down payment will result in a reduced interest rate, since you will have a good deal of equity from the beginning. You may opt to pay points to bring down your rate over the loan term, meaning you pay more up front. One strategy that is a good option for many people is to pay points to improve the rate over the term of the loan. You'll pay more initially, but you will save money in the long run.
Affinity Mortgage Brokers can answer questions about rate lock periods and many others. Give us a call: 719-425-2226.