Getting a Low Interest Rate
Locking in your Interest Rate
When you are promised a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate for a determined period for the application process. This ensures that your interest rate won't grow during the application process.
While there are several lengths of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. You can get a longer period for your lock, but in making this choice, will probably have a higher rate than you would have with a shorter rate lock span of time
Other Interest Saving Strategies
In addition to choosing a shorter lock period, there are other ways you can score the best rate. The larger the down payment, the smaller your interest rate will be, as you will be starting with more equity. You can pay points to lower your interest rate over the loan term, meaning you pay more initially. One strategy that is a good option for many people 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 in the end.
Alternative Mortgage Group can walk you through the pitfalls of getting a mortgage. Call us: 561-395-4264.