Getting a Low Interest Rate
Locking in your Interest Rate
A rate "lock" or "commitment" is a lender's promise to set a certain interest rate and a specific number of points for you for a certain period while your application is processed. This means your interest rate cannot get higher while you are working through the application process.
While there may be a choice of rate lock periods (from 15 to 60 days), the extended spans are typically more expensive. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would with a shorter span of time
More Ways to Get a Great Interest Rate
In addition to opting for the shorter lock period, there are other ways you are able to score the best rate. The more the down payment, the lower your rate will be, as you will have more equity from the beginning. You can pay points to improve your rate for the loan term, meaning you pay more up front. For many people, this makes financial sense..