A rate "lock" or "commitment" is a lender's promise to hold a certain interest rate and a specific number of points for you for a specified period of time during your application process. This keeps you from working through your entire application process and discovering at the end that your interest rate has gone up.
Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer period usually costing more. You can get a longer period for your lock, but in making this choice, will most likely have a higher interest rate than you would with a shorter span of time
In addition to choosing the shorter rate lock period, there are several ways you may be able to get the lowest rate. The bigger the down payment, the smaller the interest rate will be, as you will have more equity from the start. You could opt to pay points to bring down your rate for the term of the loan, meaning you pay more up front. One strategy that is a good option for many people is to pay points to bring the rate down over the life of the loan. You pay more up front, but you will save money in the long run.
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