Getting a Low Interest Rate
Freezing the Rate
When you're offered a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a determined period while you work on your application process. This means your interest rate will not rise during the application process.
While there may be a choice of rate lock periods (from 15 to 60 days), the longer ones are usually more expensive. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would have with a shorter rate lock period
Other Interest Saving Strategies
In addition to going with the shorter rate lock period, there are more ways you can get the best rate. A bigger down payment will result in a lower interest rate, because you'll have more equity at the start. You can pay points to reduce your interest rate for the loan term, meaning you pay more initially. For many people, this makes financial sense..
Contemporary Mortgage Services, Inc can answer questions about rate lock periods and many others. Give us a call at 407-834-3377.
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