"Rate Lock" and other Ways to Get a Lower Interest Rate

Lock It In

A rate "lock" or "commitment" is a promise from the lender to freeze a particular interest rate and a specific number of points for you for a certain period during your application process. This prevents you from going through your entire application process and discovering at the end that the interest rate has gotten higher.

While there might be a choice of rate lock periods (from 15 to 60 days), the extended ones are typically more expensive. You can get a longer period for your lock, but in doing so, will likely have a higher interest rate than you would have with a shorter rate lock period

More Ways to Save on Interest

In addition to going with the shorter lock period, there are more ways you can get the best rate. The larger down payment you make, the smaller the rate will be, because you will have more equity from the start. You might choose to pay points to bring down your rate for the term of the loan, meaning you pay more initially. One strategy that makes financial sense for many people is to pay points to bring the rate down over the life of the loan. You'll pay more initially, but you'll save money, especially if you don't refinance early.