Getting a Low Interest Rate
Freezing the Rate
When you're offered a "rate lock" from a lender, it means that you are guaranteed to get a certain interest rate for a certain number of days while you work on your application process. This saves you from going through your whole application process and finding out at the end that your interest rate has risen higher.
Although there might be a choice of rate lock periods (from 15 to 60 days), the longer ones are generally more expensive. You can get a longer period for your lock, but in choosing this option, will probably have a higher interest rate than you would have with a shorter rate lock span of time
Other Interest Saving Strategies
There are more ways to get a good rate, in addition to choosing a shorter rate lock period. The larger down payment you pay, the lower your interest rate will be, as you will be entering the loan with more equity. You could choose to pay points to lower your interest rate for the loan term, meaning you pay more up front. To many people, this makes sense and is a good deal..
Alternative Mortgage Group can walk you through the pitfalls of getting a mortgage. Call us: 561-395-4264.