"Rate Lock" and other Ways to Get a Lower Interest Rate
Freezing the Rate
When you're promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate for a determined period while you work on the application process. This means your interest rate cannot get higher during the application process.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period generally costing more. You can get a longer period for your lock, but in choosing this option, will probably have a higher rate than you would with a shorter rate lock span of time
Additional Ways to Save on Interest
In addition to choosing a shorter rate lock period, there are several ways you can attain the best rate. A larger down payment will get you a reduced interest rate, because you'll have more equity at the start. You can pay points to bring down your rate over the life of the loan, meaning you pay more initially. For a lot of people, this makes financial sense..