What is a "rate lock period"?

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Locking in your Interest Rate

A rate "lock" or "commitment" is a lender's promise to freeze a certain interest rate and a specific number of points for you for a specified period while your application is processed. This protects you from getting through your whole application process and learning at the end that the interest rate has gotten higher.

Although there might be a choice of rate lock periods (from 15 to 60 days), the extended spans are typically 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 have with a shorter period

Other Interest Saving Strategies

There are other ways to get a lower rate, besides agreeing to a shorter rate lock period. A larger down payment will get you a lower interest rate, since you will have a good amount of equity at the start. You can pay points to bring down your interest rate for the loan term, meaning you pay more initially. To many people, this is a good option..

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