When you're offered a "rate lock" from the lender, it means that you are guaranteed to keep a particular interest rate for a certain number of days for your application process. This means your interest rate cannot grow while you are going through the application process.
Rate lock periods can be various lengths of time, between fifteen to sixty days, with the longer period typically costing more. The lending institution will agree to hold an interest rate and points for a longer period, say 60 days, but in exchange, the rate (and sometimes points) will be higher than that of a rate lock of a shorter period.
In addition to going with the shorter lock period, there are several ways you are able to attain the best rate. The bigger down payment you can make, the better your rate will be, as you will have more equity from the start. You can pay points to lower your 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 bring the rate down over the life of the loan. You are paying more initially, but you will come out ahead, especially if you keep the loan for a long time.
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