A rate "lock" or "commitment" is a lender's promise to hold a specific interest rate and a specific number of points for you for a certain period during your application process. This ensures that your interest rate will not rise during the application process.
While there are various lengths of rate lock periods (from 15 to 60 days), the extended ones are generally more expensive. You can get a longer period for your lock, but in doing so, will probably have a higher rate than you would have with a shorter rate lock period
In addition to going with the shorter lock period, there are more ways you are able to get the lowest rate. The larger the down payment, the better your rate will be, as you will be starting with more equity. You can pay points to lower your interest rate over the loan term, meaning you pay more up front. For a lot of people, this makes financial sense..
Looking for a new home loan? Fill out the following form to get a fast quote from us.