A rate "lock" or "commitment" is a lender's promise to freeze a particular interest rate and a specific number of points for you for a certain period of time during your application process. This ensures that your interest rate cannot go up during the application process.
Although there may be a choice of rate lock periods (from 15 to 60 days), the longer spans are generally more expensive. You can get a longer period for your lock, but in making this choice, will probably have a higher rate than you would with a shorter rate lock span of time
In addition to going with the shorter lock period, there are other ways you are able to get the best rate. A larger down payment will result in a better interest rate, because you will have a good deal of equity at the start. You can pay points to reduce your interest rate over the life of the loan, meaning you pay more initially. To many people, this makes sense and is a good deal..
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.