When you are offered a "rate lock" from a lender, it means that you are guaranteed to keep a specific interest rate over a certain number of days for the application process. This ensures that your interest rate cannot grow during the application process.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer spans usually costing more. A lender can agree to hold an interest rate and points for a longer span of time, such as sixty days, but in exchange, the rate (and sometimes points) will be more than that of a rate lock of a shorter period.
There are more ways to get a better rate, besides opting for a shorter rate lock period. The bigger down payment you make, the smaller the rate will be, as you will have more equity from the start. You might choose to pay points to bring down your interest rate over the loan term, meaning you pay more up front. One strategy that makes financial sense for many people is to pay points to bring the rate down over the life of the loan. You are paying more initially, but you will save money, especially if you keep the loan for the full term.
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