"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate for a certain number of days for your application process. This ensures that your interest rate will not get higher while you are working through the application process.
Rate lock periods can vary in length, between 15 to 60 days, with the longer spans usually costing more. You can get a longer period for your lock, but in doing so, will most likely have a higher rate than you would have with a shorter rate lock period
More Ways to Get a Great Interest Rate
There are other ways to get a good rate, in addition to agreeing to a shorter rate lock period. The larger down payment you pay, the better your interest rate will be, since you will be starting with more equity. You can pay points to lower your interest rate over the term of the loan, meaning you pay more initially. To a lot of people, this is a good option..