Locking It In
A rate “lock” or “commitment” is a promise from the lender to lock in a specific interest rate and a particular number of points for you for a certain period of time during your application process. This means your interest rate can’t rise as you are going through the application process.
Rate lock periods can vary in length, between 15 to 60 days, with the longer ones usually costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would with a shorter span of time
Other Interest Saving Strategies
There are other ways to get a good rate, in addition to choosing a shorter rate lock period. The larger the down payment, the smaller the interest rate will be, since you will have more equity from the beginning. You can pay points to reduce your rate for the term of the loan, meaning you pay more up front. To a lot of people, this makes sense and is a good deal..
