When you are promised a "rate lock" from the lender, it means that you are guaranteed to keep a specific interest rate over a determined period while you work on the application process. This protects you from going through your whole application process and learning at the end that the interest rate has gotten higher.
Although there are several lengths of rate lock periods (from 15 to 60 days), the extended spans are generally more expensive. You can get a longer period for your lock, but in doing so, will likely have a higher rate than you would with a shorter span of time
There are other ways to get a reduced rate, besides agreeing to a shorter rate lock period. The bigger down payment you make, the lower the rate will be, because you will be starting with more equity. You can pay points to improve your interest rate over the loan term, meaning you pay more up front. To a lot of people, this makes sense and is a good deal..
Looking for a new home loan? Fill out the following form to get a fast quote from us.