Getting a Low Interest Rate

Freezing the Rate

When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate for a determined period for the application process. This keeps you from going through your whole application process and finding out at the end that the interest rate has gotten higher.

Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer period usually 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 have with a shorter span of time

Other Interest Saving Strategies

There are other ways to get a reduced rate, besides choosing a shorter rate lock period. The larger down payment you can pay, the better the interest rate will be, as you will have more equity from the beginning. You can pay points to reduce your interest rate for the term of the loan, meaning you pay more up front. To a lot of people, this makes sense and is a good deal..

At Amity Mortgage LLC, we answer questions about this process every day. Call us: (203) 729-6681.

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