The interest rates offered by mortgage companies can be locked weeks and even months in advance of the closing date. Keep in mind though, the longer the lock period, the higher the interest rate. Depending upon the economy the rates may decrease or increase significantly before the closing date. Watch for indications of a changing interest rate (even 1/8 of a point), then lock the rate with the mortgage company as late as you can or feel comfortable waiting, thus reducing your monthly mortgage payment. An interest rate change of 1/8 of a point for a 30-year $100,000 mortgage will change your monthly payments by almost $9.

     Try to negotiate a lower interest rate by using your credit rating and down payment amount as leverage. Offer to allow payments to be withdrawn from your bank account directly as opposed to writing a check every month. Also, ask if you can make payments weekly or biweekly as opposed to once a month. A change in the payment schedule may seem useless, but it is more beneficial. Realize there are only 12 months in the year, which would seem to be 24 biweekly payments, but there are actually 52 weeks in the year that results in 26 biweekly payments. Paying your mortgage biweekly results in an extra monthly payment each year.


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