This episode is sponsored by Eckard Enterprises. To start empowering your financial future, visit www.EckardEnterprises.com

Confused on when you can or should lock your rate for a new mortgage?

When you turn in a contract for a home purchase, you can lock the rate at that point or you may choose to "float the rate" if you think rates might go down before your loan closes. 

Also, should you spend points to get a lower rate? Maybe. You need to understand how long it would take to "break even" for the money you spend up front to get the lower rate. 

If rates go down and you modify or refinance your loan, then you may never break even. Doug explains how to calculate this and reasons you may or may not choose to pay points.

To get a free copy of Doug's free book on physician mortgages, go to www.DougCrouse.com.