Getting a Low Interest Rate
Locking It In
When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate over a determined period for your application process. This means your interest rate will not grow as you are going through the application process.
While there are various lengths 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 making this choice, will probably have a higher rate than you would have with a shorter span of time
More Ways to Get a Great Interest Rate
There are other ways to get a low rate, in addition to opting for a shorter rate lock period. The bigger the down payment, the smaller the rate will be, as you will be starting with more equity. You might choose to pay points to lower your interest rate over the life of the loan, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to improve the interest rate over the life of the loan. You'll pay more up front, but you'll come out ahead, especially if you don't refinance early.
Carter Financial Solutions can walk you through the pitfalls of getting a mortgage. Call us at 8668408745.