Getting a Low Interest Rate

Locking in your Interest Rate

When you're offered a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate over a certain number of days while you work on the application process. This protects you from getting through your whole application process and finding out at the end that the interest rate has risen higher.

While there can be a choice of rate lock periods (from 15 to 60 days), the extended ones are usually more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher interest rate than you would have with a shorter rate lock period

Additional Ways to Save on Interest

In addition to choosing the shorter lock period, there are other ways you may be able to attain the best rate. A larger down payment will give you a better interest rate, because you will have more equity at the start. You may choose to pay points to lower your rate over the life of the loan, meaning you pay more initially. One strategy that is a good option for some is to pay points to bring the rate down over the term of the loan. You pay more initially, but you will come out ahead, especially if you don't refinance early.

AmeriBest Mortgage can answer questions about rate lock periods & many others. Give us a call at 3217777277.