A rate "lock" or "commitment" is a lender's promise to freeze a certain interest rate and a particular number of points for you for a specified period during your application process. This saves you from getting through your entire application process and finding out at the end that your interest rate has gone up.
Rate lock periods can vary in length, anywhere from 15 to 60 days, with the longer spans typically costing more. A lending institution will agree to lock in an interest rate and points for a longer span of time, such as 60 days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of a shorter period.
In addition to opting for the shorter lock period, there are several ways you are able to score the best rate. The bigger down payment you can make, the smaller your rate will be, because you will have more equity from the beginning. You can pay points to bring down your interest rate for the loan term, meaning you pay more up front. To many people, this makes financial sense..
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