Getting a Low Interest Rate

What is a Rate Lock?

When you're promised a "rate lock" from a lender, it means that you are guaranteed to get a particular interest rate over a determined period while you work on your application process. This prevents you from getting through your entire application process and learning at the end that the interest rate has gotten higher.

Although there can be a choice of rate lock periods (from 15 to 60 days), the longer ones are generally more expensive. You can get a longer period for your lock, but in making this choice, will probably have a higher rate than you would have with a shorter rate lock span of time

Other Ways to Save on Interest

There are other ways to get a reduced rate, besides opting for a shorter rate lock period. A larger down payment will get you a lower interest rate, since you'll have a good deal of equity from the beginning. You can pay points to improve your interest rate for the loan term, meaning you pay more up front. To many people, this makes sense and is a good deal..