Getting a Low Interest Rate
What is a Rate Lock?
When you are offered a "rate lock" from a lender, it means that you are guaranteed to get a certain interest rate over a certain number of days for the application process. This ensures that your interest rate can't rise as you are working through the application process.
While there may be a choice of rate lock periods (from 15 to 60 days), the extended spans are generally more expensive. You can get a longer period for your lock, but in choosing this option, will probably have a higher interest rate than you would have with a shorter rate lock span of time
More Ways to Get a Great Interest Rate
In addition to choosing a shorter lock period, there are other ways you may be able to score the best rate. The more the down payment, the better your interest rate will be, since you will be starting with more equity. You can pay points to bring down your interest rate for the loan term, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to reduce the rate over the life of the loan. You are paying more initially, but you will save money, especially if you don't refinance early.
Pioneer Mortgage Corp can walk you through the pitfalls of getting a mortgage. Give us a call: 781-245-4924.