In general, your mortgage interest will be influenced by the capital market, which is controlled mostly by the state of the economy and the Federal Reserve. Inflation is a common trigger for a change in interest rates, usually increasing when there is high threat of inflation. The Federal Reserve keeps certain limits on inflation and the interest rates, but there is still a lot of variation in the rates according to the market.

Although interest rates are determined by external factors that are often outside of your control, there are also things you can do as a home buyer to lower your home loan’s interest rates. One of these ways is to buy points when you close on your home. These points are basically an extension of the down payment, a payment beyond the necessary down payment amount, to make the monthly interest rate a bit lower than it would have been originally.

The difficulty with points is that they are fairly expensive. One point is equal to one percent of your loan amount. So if your home loan is $100,000 and you pay one point, you would be paying $1,000. This would lower your interest rate a small amount over the life of your loan.

To find out how much you would save, divide the total cost of the points by the amount you save each month. This number will tell you how many payments (usually, in months) it will take for you to start saving more than you would have. While deciding to pay points or not, consider how long you plan to keep your home. If you are not going to keep it more than ten years, it is probably not worth buying points.

At GreenPoint Mortgage, you can easily lock in your rates and points. There are three simple steps to being locked in. First you must submit your application and provide all of the supporting documentation. Next your application and documentation will be reviewed by our team and approved by the underwriting department. Finally, once you pay your application fee to cover your appraisal and credit report, GreenPoint will contact you and inform you of the rates and points that you will have locked in for your mortgage term.

This means that you are guaranteed a certain interest rate in accordance with the amount of points you have paid. Even if due to fluctuations in the market, the rates change between the period in which the application was approved and when you make you make first payment, you will still only be paying the original rate that you were told at the time when your loan was approved.

The lock in rate is usually 30 days and GreenPoint Mortgage will remind you of this timeframe throughout the month. GreenPoint offers you no additional charges for the lock-in rate. Remember that applying for a mortgage online with GreenPoint Mortgage ensures you the most competitive rates on the market, quick loan processing and exceptional service.