Getting a Low Interest Rate

Locking in your Interest Rate

When you're promised a "rate lock" from a lender, it means that you are guaranteed to keep a set interest rate over a certain number of days for the application process. This prevents you from going through your whole application process and discovering at the end that your interest rate has gone up.

While there might be a choice of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. A lending institution will agree to freeze an interest rate and points for a longer span of time, say sixty days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of fewer days.

More Ways to Get a Great Interest Rate

In addition to opting for the shorter rate lock period, there are several ways you may be able to score the best rate. The bigger down payment you can pay, the smaller the rate will be, since you will be entering the loan with more equity. You may opt to pay points to improve your rate for the loan term, meaning you pay more up front. For a lot of people, this makes sense and is a good deal..

Atlantic Financial Services can walk you through the pitfalls of getting a mortgage. Call us: (732) 969-9300.

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