Getting a Low Interest Rate
Lock It In
When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a determined period for the application process. This means your interest rate can't grow during the application process.
Although there can be a choice of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. A lending institution can agree to lock in an interest rate and points for a longer period, like sixty days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of a shorter period.
Additional Ways to Save on Interest
There are more ways to get a lower rate, besides agreeing to a shorter rate lock period. The more the down payment, the smaller the rate will be, because you will have more equity from the beginning. You might choose to pay points to bring down your rate over the loan term, meaning you pay more initially. To a lot of people, this is a good option..
Alternative Mortgage Group can answer questions about rate lock periods & many others. Give us a call at 561-395-4264.