When you are offered a "rate lock" from your lender, it means that you are guaranteed to get a certain interest rate over a determined period for your application process. This keeps you from working through your entire application process and learning at the end that the interest rate has risen higher.
Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer spans usually costing more. A lender will agree to freeze an interest rate and points for a longer period, like sixty days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of fewer days.
There are more ways to get a better rate, besides agreeing to a shorter rate lock period. The larger the down payment, the lower the rate will be, as you will be starting with more equity. You could opt to pay points to reduce your interest rate for the loan term, meaning you pay more up front. One strategy that is a good option for many people is to pay points to reduce the rate over the term of the loan. You pay more up front, but you will save money, especially if you don't refinance early.
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