When you're promised a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate over a determined period while you work on the application process. This means your interest rate won't grow while you are going through the application process.
While there might be a choice 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 choosing this option, will likely have a higher rate than you would with a shorter span of time
There are more ways to get a good rate, besides going with a shorter rate lock period. A bigger down payment will give you a better interest rate, because you'll have more equity at the start. You can pay points to bring down your rate for the term of the loan, meaning you pay more up front. To a lot of people, this makes financial sense..
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.