Getting a Low Interest Rate
Lock It In
When you're promised a "rate lock" from your lender, it means that you are guaranteed to get a particular interest rate for a determined period while you work on the application process. This means your interest rate cannot grow as you are going through the application process.
Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer spans typically costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would with a shorter span of time
Additional Ways to Save on Interest
There are other ways to get a good rate, in addition to agreeing to a shorter rate lock period. A bigger down payment will result in a reduced interest rate, because you are starting out with more equity. You may choose to pay points to bring down your interest rate over the loan term, meaning you pay more initially. To many people, this makes financial sense..
C2 Financial Corporation can walk you through the pitfalls of getting a mortgage. Give us a call at (727) 478-2797.
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