Getting a Low Interest Rate

Lock It In

When you're offered a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate for a certain number of days while you work on your application process. This prevents you from going through your whole application process and finding out at the end that your interest rate has gotten higher.

Rate lock periods can vary in length, between 15 to 60 days, with the longer spans generally costing more. The lending institution will agree to hold an interest rate and points for a longer span of time, such as 60 days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.

Other Interest Saving Strategies

In addition to opting for the shorter lock period, there are other ways you are able to attain the best rate. The larger down payment you can pay, the better your rate will be, since you will be starting with more equity. You could opt to pay points to improve your rate over the loan term, meaning you pay more up front. To a lot of people, this makes financial sense..

Affinity Mortgage Brokers can answer questions about rate lock periods & many others. Call us: 719-331-6278.

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