When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a specific interest rate over a determined period for the application process. This keeps 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 be various lengths of time, anywhere from fifteen to sixty days, with the longer spans generally costing more. A lender can agree to lock in 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 higher than that of a rate lock of fewer days.
In addition to choosing a shorter lock period, there are several ways you can attain the lowest rate. The more the down payment, the smaller your interest rate will be, because you will be entering the loan with more equity. You might choose to pay points to bring down your rate over the term of the loan, meaning you pay more initially. For many people, this makes sense and is a good deal..
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