Getting a Low Interest Rate

Locking in your Interest Rate

When you're offered a "rate lock" from a lender, it means that you are guaranteed to keep a set interest rate over a determined period while you work on the application process. This keeps you from going through your entire application process and finding out at the end that the interest rate has gone up.

Although there may be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. You can get a longer period for your lock, but in doing so, will likely have a higher rate than you would have with a shorter rate lock span of time

Other Ways to Save on Interest

There are more ways to get a good rate, in addition to choosing a shorter rate lock period. A larger down payment will give you a lower interest rate, because you are starting out with a good deal of equity. You can pay points to bring down your rate over the life of the loan, meaning you pay more initially. For many people, this makes sense and is a good deal..

ADVISORY MORTGAGE can walk you through the pitfalls of getting a mortgage. Call us: 8102292820.