Getting a Low Interest Rate

Locking in your Interest Rate

When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a specific interest rate over a determined period for the application process. This prevents you from getting through your whole application process and learning at the end that your interest rate has risen higher.

Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer ones generally costing more. A lender may agree to freeze an interest rate and points for a longer period, like 60 days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of a shorter period.

Other Interest Saving Strategies

In addition to going with the shorter lock period, there are several ways you may be able to get the lowest rate. A larger down payment will give you a lower interest rate, because you're starting out with a good deal of equity. You may opt to pay points to improve your rate over the term of the loan, meaning you pay more up front. To a lot of people, this makes sense and is a good deal..

Amity Mortgage LLC can answer questions about rate lock periods & many others. Call us at (203) 729-6681.

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