Getting a Low Interest Rate
Freezing the Rate
When you are promised a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate over a certain number of days while you work on the application process. This means your interest rate cannot grow while you are going through the application process.
While there might be a choice of rate lock periods (from 15 to 60 days), the longer spans are typically more expensive. You can get a longer period for your lock, but in choosing this option, will likely have a higher interest rate than you would with a shorter rate lock span of time
Other Interest Saving Strategies
In addition to opting for the shorter lock period, there are more ways you may be able to score the best rate. A bigger down payment will give you a better interest rate, because you'll have a good deal of equity at the start. You can pay points to lower your rate for the loan term, meaning you pay more initially. To many people, this is a good option..