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 certain interest rate for a certain number of days for your application process. This prevents you from going through your entire application process and finding out at the end that your interest rate has gotten higher.

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

Other Ways to Save on Interest

In addition to going with a shorter rate lock period, there are other ways you are able to get the lowest rate. The larger down payment you make, the lower the interest rate will be, as you will have more equity from the start. You might opt to pay points to reduce your interest rate over the loan term, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to improve the interest rate over the term of the loan. You'll pay more initially, but you'll come out ahead, especially if you keep the loan for a long time.

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

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question