What is a "rate lock period"?
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Locking in your Interest Rate
When you are offered a "rate lock" from a lender, it means that you are guaranteed to get a certain interest rate over a determined period for the application process. This means your interest rate won't get higher while you are working through the application process.
Rate lock periods can be various lengths of time, anywhere from 15 to 60 days, with the longer ones usually costing more. A lender may agree to lock in an interest rate and points for a longer span of time, like 60 days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.
Other Interest Saving Strategies
In addition to choosing the shorter lock period, there are other ways you can score the best rate. A larger down payment will get you a lower interest rate, since you'll have more equity at the start. You can pay points to reduce your interest rate over the term of the loan, meaning you pay more up front. To many people, this is a good option..
