Getting a Low Interest Rate
Lock It In
When you're offered a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate over a determined period while you work on the application process. This keeps you from going through your whole application process and learning at the end that your interest rate has gotten higher.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer ones generally costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher interest rate than you would with a shorter span of time
Other Interest Saving Strategies
In addition to going with the shorter rate lock period, there are other ways you may be able to attain the lowest rate. A bigger down payment will get you a better interest rate, since you'll have a good amount of equity from the beginning. You may choose to pay points to bring down your interest rate over the loan term, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to bring the rate down over the life of the loan. You pay more up front, but you'll save money, especially if you don't refinance early.
Coastal Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Give us a call: 504-866-5626.
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