Getting a Low Interest Rate

Lock It In

When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a particular interest rate for a determined period for your application process. This means your interest rate will not go up as you are going through the application process.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer ones typically costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would have with a shorter period

Other Interest Saving Strategies

In addition to opting for a shorter rate lock period, there are more ways you are able to attain the lowest rate. A bigger down payment will result in a lower interest rate, since you'll be starting out with more equity. You could choose to pay points to lower your rate for the loan term, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to improve the rate over the life of the loan. You'll pay more up front, but you'll save money, especially if you don't refinance early.

Alternative Mortgage Group can answer questions about rate lock periods and many others. Call us at 561-395-4264.

Alternative Mortgage Group

80 SW 14 Ave
Boca Raton, FL 33486