Getting a Low Interest Rate

Lock It In

When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate for a certain number of days for your application process. This protects you from going through your entire application process and learning at the end that your interest rate has gotten higher.

Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer period typically costing more. 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 rate lock span of time

Additional Ways to Save on Interest

There are more ways to get a better rate, besides going with a shorter rate lock period. The bigger the down payment, the smaller the interest rate will be, since you will be starting with more equity. You may choose to pay points to reduce your rate for the term of the loan, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to bring the rate down over the life of the loan. You are paying more initially, but you will come out ahead, especially if you don't refinance early.

Hawk Mortgage Group can walk you through the pitfalls of getting a mortgage. Give us a call: (443) 619-7900.

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