A rate "lock" or "commitment" is a promise from the lender to lock in a specific interest rate and a particular number of points for you for a certain period during your application process. This saves you from going through your entire application process and discovering at the end that your interest rate has risen higher.
While there are various lengths 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 doing so, will most likely have a higher interest rate than you would have with a shorter span of time
There are other ways to get a reduced rate, in addition to choosing a shorter rate lock period. The more the down payment, the lower your interest rate will be, as you will be starting with more equity. You can pay points to reduce your rate over the life of the loan, meaning you pay more up front. To many people, this is a good option..
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.