Getting a Low Interest Rate

Locking It In

A rate "lock" or "commitment" is a lender's promise to lock in a specific interest rate and a certain number of points for you for a specified period of time during your application process. This ensures that your interest rate can't go up during the application process.

While there are various lengths of rate lock periods (from 15 to 60 days), the extended spans are usually more expensive. You can get a longer period for your lock, but in making this choice, will likely have a higher rate than you would with a shorter rate lock period.

More Ways to Get a Great Interest Rate

In addition to going with a shorter lock period, there are more ways you can score the lowest rate. A bigger down payment will result in a lower interest rate, since you'll have a good amount of equity from the beginning. You can pay points to reduce your rate for the life of the loan, meaning you pay more up front. For many people, this is a good option.