Getting a Low Interest Rate
Lock It In
A rate “lock” or “commitment” is a lender’s promise to freeze a particular interest rate and a particular number of points for you for a specified period of time during your application process. This keeps you from going through your whole application process and discovering at the end that your interest rate has gone up.
While there are several lengths of rate lock periods (from 15 to 60 days), the extended ones are usually more expensive. You can get a longer period for your lock, but in making this choice, will most likely have a higher rate than you would with a shorter period
More Ways to Get a Great Interest Rate
There are more ways to get a good rate, besides opting for a shorter rate lock period. The more the down payment, the better the interest rate will be, since you will be entering the loan with more equity. You might opt to pay points to improve your interest rate over the loan term, meaning you pay more initially. To many people, this is a good option..