Getting a Low Interest Rate
Locking in your Interest Rate
When you're offered a "rate lock" from a lender, it means that you are guaranteed to get a particular interest rate over a determined period while you work on your application process. This means your interest rate won't grow during the application process.
Rate lock periods can vary in length, between fifteen to sixty days, with the longer spans typically costing more. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
There are other ways to get a good rate, in addition to choosing a shorter rate lock period. The larger the down payment, the smaller the rate will be, as you will have more equity from the start. You might choose 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 some is to pay points to improve the rate over the term of the loan. You will pay more up front, but you'll save money in the long run.
Financial Edge Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Call us: 425-508-9988.
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