Getting a Low Interest Rate
Freezing the Rate
When you're offered a "rate lock" from the lender, it means that you are guaranteed to get a particular interest rate over a certain number of days for your application process. This protects you from going through your entire application process and discovering at the end that your interest rate has risen higher.
Although there are various lengths of rate lock periods (from 15 to 60 days), the longer ones are generally more expensive. 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 rate lock period
More Ways to Get a Great Interest Rate
In addition to going with a shorter rate lock period, there are more ways you can get the lowest rate. The larger down payment you make, the lower your rate will be, as you will have more equity from the start. You can pay points to improve your rate over the loan term, meaning you pay more up front. To a lot of people, this makes sense and is a good deal..
At Valley Savers Mortgage, LLC, we answer questions about this process every day. Call us: (602) 332-9544.
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