Getting a Low Interest Rate

What is a Rate Lock?

A rate "lock" or "commitment" is a lender's promise to freeze a specific interest rate and a certain number of points for you for a specified period during your application process. This ensures that your interest rate can't go up during the application process.

Although there are several lengths of rate lock periods (from 15 to 60 days), the longer ones are usually more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher 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 lower rate, besides choosing a shorter rate lock period. A bigger down payment will give you a better interest rate, because you'll be starting out with more equity. You may opt to pay points to bring down your interest rate over the loan term, meaning you pay more initially. For a lot of people, this is a good option..

American Mortgage Advisers, Inc can walk you through the pitfalls of getting a mortgage. Call us at 2147390569.