When you are offered a "rate lock" from the lender, it means that you are guaranteed to get a particular interest rate for a determined period for the application process. This ensures that your interest rate will not rise during the application process.
While there might be a choice of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. A lender can agree to hold an interest rate and points for a longer span of time, such as 60 days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of a shorter period.
There are more ways to get a reduced rate, besides agreeing to a shorter rate lock period. A bigger down payment will result in a better interest rate, since you'll be starting out with a good deal of equity. You can pay points to bring down your interest rate over the term of the loan, meaning you pay more initially. One strategy that is a good option for many people is to pay points to bring the rate down over the term of the loan. You'll pay more up front, but you will save money, especially if you keep the loan for a long time.
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