Getting a Low Interest Rate

Locking in your Interest Rate

A rate "lock" or "commitment" is a lender's promise to lock in a certain interest rate and a specific number of points for you for a specified period of time while your application is processed. This protects you from going through your entire application process and finding out at the end that your interest rate has gone up.

Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer spans generally costing more. You can get a longer period for your lock, but in choosing this option, will likely have a higher interest rate than you would have with a shorter rate lock period

More Ways to Get a Great Interest Rate

There are more ways to get a good rate, besides going with a shorter rate lock period. A larger down payment will give 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 loan term, meaning you pay more initially. For many people, this makes sense and is a good deal.