When you're promised a "rate lock" from your lender, it means that you are guaranteed to get a set interest rate for a certain number of days while you work on your application process. This saves you from working through your entire application process and learning at the end that your interest rate has risen higher.
Rate lock periods can vary in length, between 15 to 60 days, with the longer ones typically costing more. 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 low rate, besides choosing a shorter rate lock period. A bigger down payment will result in a reduced interest rate, since you will have more equity from the beginning. You can pay points to bring down your interest rate for the life of the loan, meaning you pay more initially. For many 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.