When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a set interest rate over a determined period for the application process. This saves you from getting through your entire application process and finding out at the end that your interest rate has gone up.
Rate lock periods can vary in length, anywhere from fifteen to sixty days, with the longer period generally costing more. The lending institution will agree to lock in an interest rate and points for a longer period, like 60 days, but in exchange, the rate (and sometimes points) will be more than with a rate lock of a shorter period.
There are more ways to get a reduced rate, in addition to choosing a shorter rate lock period. The bigger the down payment, the lower your interest rate will be, since you will have more equity from the start. You could choose to pay points to bring down your interest rate for the loan term, meaning you pay more initially. One strategy that makes financial sense for some is to pay points to bring the rate down over the life of the loan. You'll pay more up front, but you will save money, especially if you keep the loan for the full term.
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