Getting a Low Interest Rate
What is a Rate Lock?
A rate "lock" or "commitment" is a promise from the lender to hold a certain interest rate and a specific number of points for you for a specified period while your application is processed. This saves you from getting through your entire application process and finding out at the end that your interest rate has gone up.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would have with a shorter period
Other Interest Saving Strategies
In addition to going with a shorter rate lock period, there are other ways you can score the lowest rate. The bigger down payment you can make, the lower your interest rate will be, because you will have more equity from the beginning. You may opt to pay points to reduce your rate for the loan term, meaning you pay more up front. For many people, this is a good option..
U.S.A. Lending, Inc. can walk you through the pitfalls of getting a mortgage. Give us a call at 305-967-7200.