Getting a Low Interest Rate
Locking in your Interest Rate
A rate "lock" or "commitment" is a lender's promise to freeze a certain interest rate and a certain number of points for you for a certain period while your application is processed. This ensures that your interest rate can't rise while you are going through the application process.
While there are various lengths of rate lock periods (from 15 to 60 days), the longer spans are typically 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 with a shorter rate lock span of time
Additional Ways to Save on Interest
In addition to choosing the shorter lock period, there are several ways you can get the lowest rate. A larger down payment will give you a reduced interest rate, since you're starting out with more equity. You could opt to pay points to bring down your rate for the loan term, meaning you pay more up front. To many people, this is a good option..
Carter Financial Solutions can walk you through the pitfalls of getting a mortgage. Call us: 866-840-8745 x2.