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 over a determined period for your application process. This prevents you from working through your entire application process and learning at the end that your interest rate has gone up.
Rate lock periods can vary in length, between 15 to 60 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 have with a shorter period
Other Interest Saving Strategies
There are other ways to get a lower rate, in addition to agreeing to a shorter rate lock period. A bigger down payment will give you a lower interest rate, because you are starting out with a good deal of equity. You might choose to 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..
Affinity Mortgage Brokers can walk you through the pitfalls of getting a mortgage. Give us a call: 719-425-2226.