A rate "lock" or "commitment" is a lender's promise to set a certain interest rate and a certain number of points for you for a specified period during your application process. This keeps you from working 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 15 to 60 days, with the longer ones typically costing more. A lending institution may agree to hold an interest rate and points for a longer span of time, say 60 days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of a shorter period.
There are other ways to get a better rate, besides going with a shorter rate lock period. A larger down payment will give you a reduced interest rate, since you're starting out with more equity. You can pay points to improve your rate over the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to improve the interest rate over the life of the loan. You'll pay more initially, but you will save money in the end.
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