Getting a Low Interest Rate

Locking in your Interest Rate

When you're offered a "rate lock" from the lender, it means that you are guaranteed to get a particular interest rate over a certain number of days for the application process. This keeps you from working through your whole application process and finding out at the end that the interest rate has gone up.

Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer period typically costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher interest rate than you would have with a shorter period

Other Ways to Save on Interest

In addition to opting for the shorter lock period, there are several ways you can attain the lowest rate. The larger the down payment, the lower the rate will be, since you will have more equity from the beginning. You could opt to pay points to bring down your rate for the life of the loan, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to bring the rate down over the term of the loan. You'll pay more initially, but you will save money in the long run.

New Millennium Mortgage Co. NMLS: 331173 can answer questions about rate lock periods & many others. Call us: (941) 366-5800.