When you're offered a "rate lock" from a lender, it means that you are guaranteed to get a particular interest rate for a certain number of days while you work on your application process. This means your interest rate will not grow during the application process.
Although there might be a choice of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. You can get a longer period for your lock, but in doing so, will probably have a higher interest rate than you would have with a shorter rate lock span of time
In addition to choosing a shorter lock period, there are other ways you can attain the best rate. A bigger down payment will result in a better interest rate, because you'll have more equity at the start. You might opt to pay points to improve your interest rate over the loan term, meaning you pay more up front. One strategy that is a good option for some is to pay points to bring the rate down over the life of the loan. You are paying more initially, but you'll come out ahead in the end.
Want to know if a home is still on the market, or if the price has changed? We can help. Simply fill out the information below and with no obligation to you we'll get back to you with your requested information. We guarantee your privacy.