Getting a Low Interest Rate

Locking It In

A rate "lock" or "commitment" is a promise from the lender to lock in a specific interest rate for you for a specified period of time while your application is processed. This ensures that your interest rate will not go up during the application process.

Rate lock periods can vary in length, from twenty to sixty days, with the longer ones usually costing more. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would with a shorter rate lock period

Other Interest Saving Strategies

There are more ways to get a better rate, in addition to agreeing to a shorter rate lock period. A bigger down payment will get you a better interest rate, since you will have more equity at the start. You could choose to pay points to lower your interest rate for the term of the loan, meaning you pay more up front. One strategy that makes financial sense for some is to pay points to bring the rate down over the term of the loan. You are paying more initially, but you will come out ahead in the long run.